Legal Question in Business Law in Oregon

Under what conditions can a vendor close a retailer's account


Asked on 7/14/12, 6:41 pm

1 Answer from Attorneys

Daniel Meek Daniel W. Meek

There are specific laws governing some kinds of products, like cars, but in general a vendor can stop selling to a retailer at any time and for any reason (or no reason), unless the retailer has a contract with the vendor that specifies that vendor must sell to retailer for a set period of time or set number of products.

A contract need not be in writing but can be the result of an understanding not put in writing. For example, say a retailer opens a store and spends a lot of money decorating it and hiring salespeople in order to sell a particular product, under the mutual understanding with the vendor that the vendor will provide the product for 5 years. The retailed can sue the vendor for breach of contract, if the vendor then stops the sales prior to the end of 5 years.

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Answered on 7/14/12, 7:05 pm


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