Legal Question in Business Law in Texas

Is it illegal if a vendor agrees to allow us to represent their product, creates a new account for us, gets an order and then cancels us due to a competitor across the hall asking them to not allow us to compete with them by carrying the same product?


Asked on 2/22/10, 5:55 pm

2 Answers from Attorneys

Darrel Behring Darrel D. Behring, PC

It may be a violation of anti-trust law. If the competitor had a valid contract with the vendor which provided an exclusive territory to the competitor, etc. and the vendor making you a distributor represents a violation of the contract then this may be legal. Anti-trust laws provide both prohibitions against monopolies and price discrimination provisions. I would need a lot more facts than I currently have to provide clear legal advise.

Darrel

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Answered on 2/28/10, 7:10 am
Jeffrey Brashear The Brashear Law Firm, PLLC

Based on what you have written, it may be a violation. Generally, an entity who sells products provided by a vendor will have a form of non-compete clause within the entity's agreement. As such, if the vendor was to violate the agreement the entity may be able to bring an action in a court. Additionally, there are laws which prohibit monopolies. More specific details of your situation would be required to determine if this was applicable. If my local law firm can assist you with this legal issue or any other legal matter, please contact us at [email protected] to arrange for an initial consultation. The above response given is not intended to create, nor does it create an on-going duty to respond to questions. Additionally, the response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

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Answered on 2/28/10, 9:16 am


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