Legal Question in Business Law in California

Convention Exhibitor Contract

I am a member of a business trade organization.

Each year, I attend and exhibit my services at their annual convention. Last year, I piggy-backed a 3 day seminar of my own on the day prior to the start of the convention. The seminar was well-received by the Board of Directors of the trade org did not like me doing.

This year in their contract they prohibit exhibitors from presenting ''any educational functions'' occuring anywhere in the entire city (Orlando) for 2 days before and 2 days after their convention.

Is this legal?

My plan was to offer a 3 hour seminar the day before the start of the convention again this year.

Should I cross off (not agree to) that portion of the contract? And again, is it legal for the trade org BODS to prohibit such activities in such a broad manner?


Asked on 5/25/05, 9:44 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Convention Exhibitor Contract

There may be an issue as to whether California or Florida law would apply to the issue, or possibly both to different aspects; or perhaps the First Amendment (free speech) to the U.S. Constitution. I can't comment on Florida law, but on the assumption that California or federal law applies to the whole issue, here's what I think.

If the trade association and the convention are private, voluntary organizations, they can probably make demands of this sort without abridging your rights. There would be a possible argument that the restriction was an unreasonable and therefore illegal anti-competitive restriction on trade, but I think the restriction is more likely than not to be found reasonable and therefore not illegal.

If on the other hand the organization is government-supported and/or membership is mandatory under some law (like a state bar association, or it performs some regulatory function, it's more likely that a case could be made that the restriction violates the First Amendment. (You need some kind of government link to invoke the 1st.)

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Answered on 5/25/05, 12:09 pm


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