Can I refuse to sell to a competitor?

Can I refuse to sell to a competitor?

The general rule is, in fact, that antitrust law does NOT prohibit a business from refusing to deal with its competitor. But the refusal-to-deal doctrine is real and can create antitrust liability.

What is the meaning of refusal to deal?

The practice of refusing or denying supply of a product to a purchaser, usually a retailer or wholesaler. Refusal to deal/sell may also arise if the purchaser is a bad credit risk, does not carry sufficient inventory or provide adequate sales service, product advertising and display, etc. …

When can a supplier refuse to supply me?

In general, a seller has the right to choose its business partners. A firm’s refusal to deal with any other person or company is lawful so long as the refusal is not the product of an anticompetitive agreement with other firms or part of a predatory or exclusionary strategy to acquire or maintain a monopoly.

Is it illegal to refuse to deal?

A refusal to deal violates the Sherman Antitrust Act and other antitrust laws, and is illegal in the United States.

Can you refuse to supply a customer?

In the United States, the main law that addresses the refusal to serve a customer is the Civil Rights Act of 1964, which covers discrimination against protected classes, such as race, gender, disability, religion, etc. If a business refuses to serve a customer on discriminatory grounds, it is illegal.

What is duty to deal?

The antitrust duty to deal is perhaps the most confounding and controversial form of antitrust intervention. It is sought by plaintiffs in situations where a monopolist controls a critical input (or “essential facility”) and unilaterally refuses to sell access to rivals.

Is refusal to deal anti-competitive discuss?

Unsourced material may be challenged and removed. Though in general, each business may decide with whom they wish to transact, there are some situations when a refusal to deal may be considered an unlawful anti-competitive practice, if it prevents or reduces competition in a market.

What word means not to be taken away?

Inalienable describes things, especially rights, that cannot be taken away, denied, or transferred to another person. Inalienable means the same thing as unalienable, which is no longer in common use.

What must you do when refusing supply to a customer?

If you think they are refusing to supply for an unlawful reason, you firstly can attempt to negotiate with the supplier and ask them to explain their reasons for withholding supply. Secondly, you may approach an industry representative who can facilitate discussions.

Can I refuse service to a rude customer?

Unless it’s a service dog protected under the Americans with Disabilities Act, you can refuse service legally. A customer threatens or verbally abuses you, your employee or other customers. You can ask them to leave. If they refuse and you have safety concerns, it may be wise to call for police backup.

What is Section 2 of the Sherman Act?

Section 2 of the Sherman Act makes it unlawful for any person to “monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations . . . .”

Can a business refuse to sell to a customer?

Simply put, while a business may “reserve the right to refuse service to anyone,” that right is limited by federal, state, and local laws. For instance, you may not refuse service to a customer because of their race, national origin, or disability.

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