Legal Question in Business Law in New Jersey

Are Vendor Management Organizations which limit the number of vendors allowed to call on a firm, guilty of restraint of trade?


Asked on 2/20/13, 11:23 am

1 Answer from Attorneys

Barry Gartenberg Barry F. Gartenberg LLC

To paraphrase H.L. Mencken, � For every question, there is an answer that is simple, neat and wrong. ---

Clearly, a prudent answer can't be given in a short email based on limited facts. That being said, the concept of restraint of trade seems not to apply here. Most typically, a restraint of trade employs some vehicle (typically, a contract) to prevent someone from doing business generally. Here, it does not appear the VMO is, in any way, attempting to prevent vendors from doing business with other customers, it is merely choosing how many vendors IT wil deal with. I welcome you to contact me to explore the issue further.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

Please visit my website! www.bgartenberg.com or call me 973-921-0600 if you�d like to learn more about me or my practice. Thank you.

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Answered on 2/20/13, 11:48 am


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