Vendor’s Broken Promise — What can you do?

What can you do?

You are between a rock and a hard place.  

Your vendor promised to repair the machine. The machine is central to your business; without it you can’t operate or make any money.  You can’t afford to replace the machine, but you can’t afford to stay in business with a broken machine.  How can you force the vendor to do what he promised—repair the machine? 

Fortunately, you have a couple of options.  I assume that your biggest concern is actually getting the machine repaired so that you can open your business.  First option, submit a claim to your commercial liability or business interruption insurance.  Since this machine is central to your business, its damage should be covered by your insurance.  If your insurance pays your claim, then they will seek reimbursement from the vendor on your behalf.  This will be one less headache for you, as a business owner.

Another option is to file a claim with the equipment company’s insurance.  If you don’t already have this information, then this is not viable for you.  But if you are lucky enough to have the vendor’s insurance or bond information, then this is great option for you.

Another option is apply for emergency funding from your local business association or government.  For example, in Philadelphia, The Merchant Fund helps local business owners with short-term funding. http://www.merchantsfund.org.  This money will allow you to repair or replace your machine and open your business. 

Final option, lease another machine, while your vendor repairs your current machine.  Or, borrow money to repair the machine and use the machine as collateral. 

Unfortunately, the court system does not move as fast as business.  So, the best way to resolve this urgent situation is to fix it yourself.  You can file a lawsuit against the vendor for damages later.  The vendor will have to reimburse you for any profit you lost while the machine was broken.  Before you resolve the problem yourself, be sure to send a letter to the vendor forewarning them about your future actions.

Good luck.

Do you have a legal question? We offer free consultations regarding this and others legal issues.  Call today or chat online, privately, with an attorney every Monday through Friday from 8 a.m. to 8 p.m. at www.mckeeoffice.com
 
 
Sharmil McKee
Business Lawyer
 
McKee Law Office
245 W. Allens Lane
Philadelphia, Pa 19119
215-242-5260 (office)
1-877-273-0749 (toll-free)
Skype Us! (mckee.law.offices)
http://www.mckeeoffice.com
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About Sharmil McKee

I am a licensed business attorney and owner of McKee Law Office. The firm focuses on providing small and mid-sized companies with strategic legal advice. I help businesses prevent and resolve contract disputes, debt collections, employee disputes and tax problems. I have helped over 100 businesses and have tried over 200 cases. In addition, I am the only business attorney in Philadelphia with over 10 years of experience owning and operating a business.