Legal Question in Business Law in Florida

I am a purchasing manager for a small business and I am forced to use a vendor that my owner as a side business with. The vendors costs are double what we pay which is costing hundreds of thousands more in COGS per year. I have presented my 3 bids on the products. I was told to continue to use the current vendor. In the past 6 months we have lost 20 employees and closed our California plant because of profitablitity. WHat should I do. I feel I am next.


Asked on 3/14/11, 7:14 pm

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

Poor business practice and perhaps diverting cash flow to another business does constitute, in itself, illegal acts. Advice: document well your purchasing analysis and recommendations; seek opportunities elsewhere.

Read more
Answered on 3/14/11, 7:28 pm
Richard Kaplan

You work for the owner, and it's their company to run it into the ground.

Your last step would be to show the owner that if he doesn't make changes, he may lose his business. Show it by financial projections, not statements. If it doesn't work, then there is not much more you can do. You did your job.

Read more
Answered on 3/14/11, 8:07 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other attorney answers. Besides what they advise, you should start circulating your resume. 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

Read more
Answered on 3/15/11, 7:19 am


Related Questions & Answers

More Business Law questions and answers in Florida