If an authorized distributor has been sent a letter saying that due to 'trademark infringement' the company is refusing to do business with them...can that company legally just stop doing business with their distributor even if the distributor is in the right on the trademark issue? It feels like extortion.
2006-06-14 06:30:26 · 2 answers · asked by Kim 3 in Business & Finance ➔ Small Business
Well, you can always speak with your lawyer, but it sounds to me like the company is within their rights- I have never heard of a law requiring them to sell products to a distributor. The only way I can think it would be a problem is if the distributor and the manufacturer have a contract stating that X number of units will be available to the distributor every month or year.
2006-06-14 06:35:06 · answer #1 · answered by bmwdriver11 7 · 0⤊ 0⤋
A company can stop doing business with anyone they choose to regardless of the reason. A distributor can also choose not to do business with a company.
2006-06-14 06:34:49 · answer #2 · answered by educated guess 5 · 0⤊ 0⤋