Legal Question in Business Law in Florida

We have just opened a retail boutique and have started ordering clothing from designers/businesses throughout the country. We had established a relationship with one company and had made many purchases over several months. Recently that company called us to say they could not sell to us any more because a larger company in our city threatened to pull their sales if they continued to sell to us. This is because we sell at a lower price point than the other store. Do we have any recourse.


Asked on 7/16/11, 5:55 pm

2 Answers from Attorneys
Sanford M. Martin Sanford M. Martin, P.A.

Unless there is information regarding your contractual relationship with the supplier which is not included in your inquiry, you do not have a legal procedure to compel the supplier to sell to you or to compel your competitor to cease such tactics.

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Answered on 7/16/11, 6:36 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I basically agree with the other attorney answer, but add the following. You would need to prove a conspiracy to fix prices under the antitrust laws and generally that requires a horizontal agreement - meaning one among competitors operating at the same distribution level. Here, it's a supplier and retailer, so the relationship is vertical and hence no violation (unless the supplier also operates retail stores). Consult with a good business or franchise attorney in your area for specific advice.

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

Franchise Foundations, a Professional Corporation

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Answered on 7/17/11, 8:00 am


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