Legal Question in Business Law in California

Re: Retail rights

You are confronting a rather complicated area of law. Essentially, you would need to assert a monopoly and or anti-trust claim vs. their right to sell to whom they please. I can help you with this area, but I would need to learn more about your specific facts and I prefer to form longer term relationships with clients -- you sound like a business person who will need an attorney for many projects/issues. I invite you to contact me.

Re: Retail rights

Absent other facts establishing that there are legitimate business reasons for the vendors' refusal to sell to you (such as creditworthiness), the practice is illegal, violating a host of California and Federal statutes, including unfair competition statutes. If these facts can be proven, then you would be entitled to file suit against the vendors and competitors on a variety of grounds. Such suit would seek not only general damages, but also disgorgement of illicit profits, injunctive relief, and in some situations, punitive damages.

However, before doing so, you would need to obtain concrete proof of the apparent conspiracy. The issue here would be definitely be one of proof. Obtain the vendor's written confirmation or assurance (email, fax, whatever) that it is not selling to you because they would rather sell to your competition. Evidence that your competition has convinced the vendor(s) not to sell to you is also key.

You should seek out a business litigator with experience in unfair competition claims. We are civil litigators with extensive experience in these types of claims. If/when you are ready to proceed, please feel free to call or email for a consultation.

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Re: Retail rights

I don't agree with the previous answers.

Manufacturers often, and perfectly legally, give exclusive territories to retailers.

Sure, the practice can be abused so as to be in illegal restraint of trade, but these controlled distribution setups are standard practice and will generally withstand legal challenge.