Friday, May 18, 2012

Special Pricing Agreement Abuse - The Jury is In

Special pricing agreements (SPA's) have become a part of the daily life of manufacturers and distributors alike.  Not a meeting goes buy where we aren't bombarded with stories of abuse.  Bait and switch tactics promise zillions of units in potential - and the promised quantities just never seem to happen.  Other times the customer repurposes product for their own benefit.  We loose and mostly feel powerless to do anything about it. 

Recently Square-D decided enough is enough.  Here's a snippet from their press release:

Schneider Electric filed suit against House of Power and Chlouber in December 2009, after Schneider Electric discovered that House of Power and Chlouber were reselling Square D brand load centers and circuit breakers, rather than installing them into new build residential homes in Houston as promised in the pricing contract House of Power had with Schneider Electric. Schneider Electric discovered resales made on the open market to Internet customers and resales made to Breakers Unlimited, an Indiana company that was found by a federal jury in 2009 to be selling counterfeit Square D brand products.

Schneider Electric sued House of Power and Chlouber for breach of contract and fraud. The federal court found that House of Power was liable to Schneider Electric for breaching the contract.

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