We are currently manufacturers/wholesalers but have an opportunity to become a distributor. I have a current customer who buys wholesale merchandise under his own private label from us. If we become distributors under our own brand and happen to cross into his territory, can we be sued for anything? We have no contract with this customer. None of the items we sell to him have patents or trademarks. These are things we sell to many different customers now. We have no idea who his existing customers are, as we ship directly to his warehouse and he drop ships from there. Thanks
wright50 - This sounds like a sensitive legal issue that could be best answered by small business lawyer. Perhaps some of our other members can share their thoughts, but in the meantime I suggest that you contact an attorney to ensure that you and your business are protected.
Let me add the usual caveat of finding some real legal advice here, most of us have done it and it allows you and your family to sleep better once decisions are made.
If I take your example into the wine world where I work, it wouldn't necessarily be a problem, but there would be a slough of shipping laws and other licensing requirements which you'd suddenly be responsible for. Not sure if your specific industry functions the same, but it's something to ask and think about.
Lastly, are any of your competitors set up that way? Why, or why not? Maybe it's because I run a business best described as a start up, but we always look to our competitors and try to figure out the decision making process in addition to the actual decisions.
ifindwholesalers.com | Window Shopper | 5/1/2012 - 12:54 am
NicoleD | Former Moderator | 2/23/2010 - 7:54 pm
MarkAse | Contributor | 12/22/2010 - 1:27 am
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