Expert Advice When You Need It Most

Can one business opt not to do business with another because a competitor requests exclusivity

Asked over 2 years ago - Miami, FL

Business

My company is a flower grower and importer. I have a customer, that doesn't buy very much, and that their competitor (that gives us a lot more business) requested for my company to quite doing business with the customer that doesn't do very much business with us. My boss directed me to close this customer's smaller account in order to keep the customer that does give us a large share of their orders happy. Is this legal? Are we within our rights to give exclusivity to the customer that gives us their business? These customers are in Ohio and my Company is in Miami Florida

Flag

Save

Share with:

Attorney answers (2)

Lynne D Shelton

Reputation Level 9

Answered over 2 years ago. Business Attorney in Cedar Park, TX.

Flag

My first question would be regarding contractual relationships. Does you company have a supplier contract with the smaller reseller? If so, the terms of that contract would determine whether you could legally quit selling to that company at this time. If there is no supplier contract in place, then you probably can give an exclusivity to the larger company.

Mark as good answer

1 person marked this answer as good

Add comment

L. Maxwell Taylor

Reputation Level 17

Answered over 2 years ago. Appeals Lawyer in Middlebury, VT.

Flag

I concur with my learned colleague. If you are not already contracted to supply flowers to the smaller competitor, you can stop doing business with them in deference to the wishes of your larger customer.

Exclusivity agreements are sometimes part of doing business. For example, if you buy an Iphone from Apple you have to sign up with AT&T for phone service. Your situation is not much different. You want to continue with the larger competitor, so you've honored their wish. That's legal, so far as I know.

This is not meant as legal advice as I don't hold Florida licensure. It's simply my analysis of the facts you lay out based on general principles of law, for educational purposes. If you need legal advice, please consult a lawyer who holds Florida licensure.

Good luck.

Mark as good answer

Add comment