Is it illegal for a company that makes transistors to stop supplying a pacemaker company that they have a contract with?


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2009-03-07 18:01:29
2009-03-07 18:01:29

depends on the contract. if they do "Have to" supply the company then the damages awarded by a judge would be great. read the contract though, it may not spell this out. if they "Don't have to" supply the company, then, the owner operator of the pacemaker company shouldn't have left him\herself do dependant on one individual component supplier. they should have left themselves an option. It wouldn't be illegal as in 'call the cops and throw him in jail', but they could be held liable for damages in civil court IF they are in violation of a legally binding contract. Here's the flipside of this question: WHY is the transistor company considering cutting off the supply to the pacemaker company? I can think of two reasons--that the transistor company for some reason no longer has anything to sell to the pacemaker company, or the pacemaker company for some reason gave the transistor company grounds to drop them. The first scenario: The transistor company quit making the part number the pacemaker company buys. In this case, most vendors will assist their customers in transitioning to a different part. If the pacemaker company for whatever reason refuses to change, the transistor company can cite that as a reason to drop the customer. The second scenario: The pacemaker company quit paying invoices. I have seen a lot of contracts; I have never seen one that doesn't state payment terms in clear language.


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