Legal Question in Business Law in New York

Poor products cost me my business

I was running a thriving online business. I decided to purchase inventory from a company that claimed to be the best in the business and was selling the best grade quality products. At first the products were fine, however with time I began to see an increase in product returns due to defective product. I contacted the supplier and he assured me it must be the fault of the customers who were mistreating the product. However when the product returns reached a record high and I was receiving terrible reviews I decided to stop business and see what was going on with the product. Another business person then asked me if I was buying from supplier X and that supplier X was selling defective product knowingly. I contacted supplier X to tell him that I was unable to pay him on the balances I owed due to the cost of the returns, replacements and also because I had to stop business as there was an outcry in online review boards and internet chat rooms. Now supplier X wants to sue me for the balance I owe. Can I counter sue supplier X for misrepresentation to rescind and possibly receive damages for the loss of my business and damage to my reputation. Thank you in advance for helping me out.


Asked on 3/15/09, 10:26 pm

3 Answers from Attorneys
Marshall Isaacs Marshall R. Isaacs, Attorney At Law

Re: Poor products cost me my business

Your situation is too involved for me or any attorney to address without first reviewing the underlying transactions and agreements and inspecting the products involved.

It sounds like you have a viable defense to any suit because the products you received were defective. You may have a possible counterclaim. Again, it is difficult to tell based upon the minimal information provided.

Yours is truly not an appropriate case for Law Guru. You truly need a full in-person consultation with a commercial litigation attorney.

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Answered on 3/15/09, 11:11 pm
Johm Smith tom's

Re: Poor products cost me my business

You have a mess but it sounds like there might be hope for you. Call me tomorrow; I focus on multi-jurisdictional and Internet business, which includes litigation and avoiding litigation. I'm licensed in NY, but also need to know where the supplier is located.

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Answered on 3/15/09, 11:37 pm
NEAL SPECTOR, ESQ. NEAL S. SPECTOR, P.C.

Re: Poor products cost me my business

You may have a viable claim as well as defenses. That will depend on too many factors to address here. What you may not have is the money to pursue it. While every lawsuit is unique, a matter such as yours could easily cost $50,000.00-$200,000.00 in legal fees alone. If you are prepared to begin that process, but with just a preliminary retainer to explore whether you possess a viable claim/defense, call me.

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Answered on 3/17/09, 10:04 am


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