Legal Question in Business Law in New Jersey

Mfr cuts off supply to customer

As a direct customer of a manufacturer, what kind of rights, if any, or what legal options do I have, if my biggest supplier decides to stop selling to my business.

The goods from this manufacturer are sold to create about 50% of the revenue for my business. If they decided, for whatever reason, to stop selling to me, it would materially hurt my business, resulting in immediate layoffs and other cutbacks.

Specifically:

Would I have grounds to file suit against the manufacturer for causing material harm to my business?

Thank you in advance for your time and consideration.

-Adam


Asked on 3/26/08, 9:40 am

3 Answers from Attorneys
Bernard J. Berkowitz Berkowitz & Raiken

Re: Mfr cuts off supply to customer

Without a written agreement, they can stop and sell to whom ever they want to. If they stopped for some illegal reason, that could be determined to be discrimination you might have the basis for a lawsuit. I would suggest setting up a meeting with the person in charge to get to the heart of the matter.

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Answered on 3/26/08, 10:01 am
Richard Wolf Wolf Law Associates LLC

Re: Mfr cuts off supply to customer

The answer to your question will depend on the kind of contract you have with the seller. Your contractual relationship, if any, could be governed by the version of the Uniform Commercial Code adopted by the state in which you do business, or by common law. If there is a breach of contract, you may have enforceable rights, but the likely remedy is money damages not specific performance.

Without more facts, it is hard to give a more specific answer. I would suggest a brief consultation with a qualified attorney.

This answer is not intended as legal advice, nor is the content of this exchange an attorney-client communication. The answer is a general response to an anonymous submission.

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Answered on 3/26/08, 10:16 am
Robert Davies The Davies Law Firm, P.A.

Re: Mfr cuts off supply to customer

Attorney Richard Wolf's answer is correct.

Find an attorney reasonably near you who handles litigation and also advises businesses. Get some advice, immediately.

Call if you like; I would be happy to speak with you about your situation. You can then decide how you would like to proceed.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

Disclaimer: Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The response that you have received is based only on the small amount of information which you have provided. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

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Answered on 3/26/08, 12:41 pm


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