B2B Law

[Jodee]

Does anyone know if there is likely to be a change in B2B law to come in line with B2C law? There are many unscrupulous larger companies taking advantage of the current law to entrap small businesses into legally binding contracts that entitles them to provide bad or no service but continue to take money! There is very little support to help small businesses!

[R0b]

The law between businesses has been around for centuries and is not likely to change in line with consumer law. There are some laws where small businesses could be protected such as the Consumer Credit Act 1974 covers sole traders but beyond that, the general principle is that the parties have the freedom to contract on whatever terms they wish and unless they are inherently unfair then the courts will not interfere simply because you have made a bad bargain.

You call it entrapment but is it really that? Many small businesses fail to read the terms they are signing up to and/or negotiate them, only then to realise that life is unfair when something goes wrong and they are pointed to those terms that were agreed to.

In terms of support for small businesses, I think there is plenty of support available but the impression I am getting is that legal support should be free. Law firms around the country offer free seminars and online webinars for businesses big and small, covering a range of topics such as contract law, employment and other kinds. Depending on where you are based, there are also legal clinics offered by law firms or partnerships with universities or charities that do give some initial legal advice free of charge. You should probably also educate yourself on how to review/negotiate contract terms a there is plenty of material online out there - that's all part and parcel of running a business.

Just to your final point about the supplier providing no service but continuing to take your money, that would definitely be an unfair contract in the eyes of the court but I suspect there's more to the story than what you've said.

Have you actually read the terms and conditions as to what rights and remedies you have if they don't supply the service? Multiple and regular failures to comply with their obligations under the contract could, when taken together, constitute a material breach entitling you to terminate but that's not always easy to argue and usually requires a court to decide.

[Jaqlina]

B2B law was implemented to allow more companies to merge. When there is a lack of investment and finances, joining forces with another company seems to be the only way out. Back then, b2b law was for small companies a life preserver.

Nowadays, we see dirty moves from big sharks on the market. Reputable companies/corporations to have fewer competitors merge with small companies. Even if, according to the contract, both parties have independent statutes, as practice shows, the smaller company will be obliged to share the capital with the bigger one.

My advice for small companies is to find a trustworthy b2b data provider and check big sharks. They may have a doubtful credit history.