This story has a basis in reality - The Names Have Been Changed To Protect The Innocent.
Mr. Abel has contracted to buy supplies regularly and exclusively from Company Baker. Company Baker will supply free of charge the dispensing and application equipment to Mr. Abel on the condition that no other supplies from a competitor be dispensed or applied with this equipment. Should Mr. Abel break this agreement, it is stipulated in the contract that Mr. Abel will pay a penalty of $100,000.
A year goes by and Mr. Abel finds out that he can buy a similar product for 1/3 the price from Company Charlie. He also finds a supplier that can supply him with dispensing and application devices at a very reasonable cost. Mr. Abel starts to buy his supplies from Company Charlie.
Company Baker finds out that products from another company is used in their dispensing and application devices and sues Mr. Abel.
How would Mr. Abel go about making this problem go away? There are 75 other businesses in the city that is selling Company Bakers product, and another 100 vendors in the general region. Can Mr. Abel make a deal with Company Baker to keep the information confidential of where to purchase the competitors product as well as where reasonably priced dispensing and application equipment can be purchased in exchange for making the $100,000 penalty go away? Should the information become known to the other vendors, Company Baker would loose a lot of sales.
Is there a line where this bargaining becomes criminal blackmail?
Mr. Abel has contracted to buy supplies regularly and exclusively from Company Baker. Company Baker will supply free of charge the dispensing and application equipment to Mr. Abel on the condition that no other supplies from a competitor be dispensed or applied with this equipment. Should Mr. Abel break this agreement, it is stipulated in the contract that Mr. Abel will pay a penalty of $100,000.
A year goes by and Mr. Abel finds out that he can buy a similar product for 1/3 the price from Company Charlie. He also finds a supplier that can supply him with dispensing and application devices at a very reasonable cost. Mr. Abel starts to buy his supplies from Company Charlie.
Company Baker finds out that products from another company is used in their dispensing and application devices and sues Mr. Abel.
How would Mr. Abel go about making this problem go away? There are 75 other businesses in the city that is selling Company Bakers product, and another 100 vendors in the general region. Can Mr. Abel make a deal with Company Baker to keep the information confidential of where to purchase the competitors product as well as where reasonably priced dispensing and application equipment can be purchased in exchange for making the $100,000 penalty go away? Should the information become known to the other vendors, Company Baker would loose a lot of sales.
Is there a line where this bargaining becomes criminal blackmail?