Legal Definitions - refusal to deal

Definition: Refusal to deal refers to a situation where a company decides not to do business with another company.

A business has the right to refuse to deal with another company, but only if it is not an illegal restraint of trade. This means that the refusal should not be based on discriminatory or anti-competitive reasons.

Examples:

• A grocery store refusing to stock a particular brand of cereal because they have had issues with the supplier's delivery in the past.
• A clothing retailer deciding not to carry a certain brand of clothing because they do not align with the store's values or target market.

In both examples, the businesses are within their rights to refuse to deal with the other company. The grocery store's decision is based on a practical issue with the supplier's delivery, while the clothing retailer's decision is based on a strategic decision to maintain their brand image and appeal to their target market.