Case Study: Protect Internet Vendor from Aggressive Supplier Threat

Background

A former corporate client of ours decided to start an internet dishware retail business. This put him in direct competition with the big box stores and other retailers. A major supplier of dishware – perhaps reacting to complaints from other retailers – began to limit supply and threatened cut-off.

The Challenge

Although our client was dwarfed by the size and resources of its supplier, we were retained to provide balance and to deal with the supplier and its counsel to see if we could come up with a mutually agreeable accommodation.

The Solution

Armed with possible state Law and Sherman Act issues, we initiated communications with the supplier’s counsel and shaped an approach. Threats of a cutoff of supply ceased. Limitations were agreed to which did not in any way inhibit our client’s operations.

The Result

Our client continued in a profitable business for years and avoided the expense and time of protracted legal battle with a Goliath.