Legal Question in Business Law in Tennessee

i own a small business, and right after purchasing the business i opened an account with a floral wholesale company out of state to purchase fresh flowers. they gave me a credit limit of $2000, but I had been allowing this company to put charges on my debit card which they had on file. on one particular holiday, our purchase amount was approx. $3600, which, instead of putting on the card, they waited and sent me a bill for the said amount 30 days later after the time i thought this had been paid on my debit. business took a bit of a hit with the economy, and we were unable to pay the full amount. we did make payments, but because of it not being paid in full....they have been adding service charges and now have turned it to a collection agency. our bill is still over $3000, even though we have actually paid over half of the original bill. are we responsible for a charge to an account that was almost double what our credit limit was and what is our recourse on this situation?..... i want to pay the debt, but the service charges and penalties have made it almost impossible to meet their demands and still have funds to operate the business.


Asked on 6/21/10, 6:22 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Any attorney will say more information is needed. Also a personal consultation is appropriate, given these circumstances. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 6/21/10, 11:15 am


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