Legal Question in Business Law in Oregon
Under what conditions can a vendor close a retailer's account
1 Answer from Attorneys
There are specific laws governing some kinds of products, like cars, but in general a vendor can stop selling to a retailer at any time and for any reason (or no reason), unless the retailer has a contract with the vendor that specifies that vendor must sell to retailer for a set period of time or set number of products.
A contract need not be in writing but can be the result of an understanding not put in writing. For example, say a retailer opens a store and spends a lot of money decorating it and hiring salespeople in order to sell a particular product, under the mutual understanding with the vendor that the vendor will provide the product for 5 years. The retailed can sue the vendor for breach of contract, if the vendor then stops the sales prior to the end of 5 years.
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