Legal Question in Business Law in Oregon

Re: Restraint of Trade

Except in certain unusual instances, there is no reason why company A cannot limit its purchases to those who sell to its competitors. However, Company A could be liable in some circumstances for unlawful interference with contracts, specifically the ongoing relationship between Company B and your manufacturer.

Antitrust laws could apply to this transaction, but only if Company A was so large as to dominate the market. It is unlikely that any RICO statutes would be involved, becasue their must be a predicate crime, and your facts do not suggest any criminal conduct.

Re: Restraint of Trade

The following are just some very initial impressions regarding your hypothetical and do not constitute legal advice. No doubt the manufacturer has legal counsel and should consult with legal counsel.

If you are the manufacturer's agent, it is not your decision to whom to sell. Thus, this appears to be not your problem.

As for the manufacturer, refusing to sell to an outlet at the behest of the outlet's competitor does raise potential unfair competition and antitrust problems.

The manufacturer can refuse to sell to anyone on the basis of poor payment history. But attorneys for the terminated outlet can conduct discovery to determine whether the decision was actually made to satisfy the request of the competing outlet.