Legal Question in Consumer Law in Virginia

Re: Choise of a freight line to ship by

Yes,(the manufacturer can) if the shipment is designated F.O.B. Destination as opposed to F.O.B. Origin, a distinction which you haven't clarified in your question.

And, no, such a requirement(often used in shipping) is most surely not a "restraint on trade".

Re: Choise of a freight line to ship by

I disagree.

If you own the merchandise at the loading dock, then you can do anything you want with it. You could set it on fire at that point, if you want (as long as you clean up the ashes).

Mr. Hendrickson is correct that there are different kinds of "FOB" and you have to be careful about that.

If it is FOB Destination, that means that the manufacturer is liable for the product until it arrives at your door or business.

So if it is lost or broken in transit, then they are responsible for it.

So by clarifying who would be responsible for losses in transit, you may get them to admit what hte status is.

If they are responsible to get it to your door step, then yes they can choose the method of shipping. They have a duty to make sure you get it, and whom they trust is a legitimate factor.

If you are responsible for the merchandise from the time it leaves their loading dock, then YOU have the freedom to choose any shipping method you want, including because you should choose someone YOU trust to deliver it safely to you.

I suppose the manufacturer COULD restrict a truck line that misbehaves at their loading dock. That might be a legitimate interest. So if they could show that a trucking company's drivers show up drunk, smash into the loading dock, and spark fist fights at the loading dock (I am being silly, obviously) then they might have a legitimate interest in not having that truck line come on to THEIR property and be at THEIR loading dock. So they might have a legitimate reason for blacklisting a trucking line "FOR CAUSE" -- based on some specific misbehavior.

But if you own the merchandise at the loading dock, then you can choose how to ship it... including buying your own trucks and doing it yourself, if you wish.

If they mandate that you use a particular trucking company, YES I think this would be an illegal "tieing contract" as a form of restraint of trade.

However, a "tieing contract" might only be illegal if you can show that the manufacturer has significant "market power." They are not ALWAYS illegal, but only illegal in furtherance of a monopoly position or significant market power. At least that is how I REMEMBER anti-trust laws off the top of my head.

So the fact that it is a restraint of trade (tieing contract) does not AUTOMATICALLY mean it is illegal... but it could be!

NOTE: But don't they have a right to control who comes on their property? It is private property...

Well, yes, but by selling you the merchandise "FOB Origin" (if they did) then they are extending an invitation (license) to come to their loading dock to pick it up. So you have permission to come get the merchandise, or send your agent to do so. By selling it FOB Origin they are saying "COME AND GET IT. It will be at our loading dock for you to come pick up."

So they have given you permission to come and get it on their property.