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Vendor arrangements?

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Gracin

Junior Member
What is the name of your state (only U.S. law)? Kansas

I have a question about the legality of a vendor that sells primarily to the oil industry, let's call this business 'Patch.' They have an arrangement with a separate business 'Key' that sells parts such as electrical, plumbing, heatin/cooling. Their arrangement basically works like this. If I as a person in the oil industry got to Key to buy electrical boxes, theyKey will mark the price up to nearly double because the deal with Patch, and Patch doesn't want anyone getting around them marking up the same item that Patch buys from Key to sell. Now if someone from a different industry, say a farmer goes into Key to purchase that same item, Key will happily sell it to them at the normal price. How can this possibly be legal?

Thanks in advance.
 



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