When Your Vendor Won’t Deliver: Practical Steps For Ohio Small Businesses Under CSPA

Many Ohio businesses rely on their vendors and suppliers. You order inventory or professional services and timely delivery can make or break your operations. What happens, though, when a vendor fails to deliver? Fortunately, Ohio law (the Ohio Consumer Sales Practices Act) and other rules provide several options for your small business seeking remediation.

Understanding the Ohio Consumer Sales Practices Act 

The Ohio Consumer Sales Practices Act (R.C. 1345.01 et seq.) is a piece of legislation that protects consumers from unfair or deceptive practices by suppliers. In many cases, it is applied in individual consumer lawsuits. However, small businesses may also benefit from the rule. This is especially true if your business purchases goods or services from other businesses. Even when the CSPA doesn’t apply directly, the principles contained therein can become a guide on how you document and pursue claims against a dishonest or negligent supplier.

The CSPA prohibits suppliers from engaging in conduct that is unfair, deceptive, or unconscionable. This includes misrepresenting the quality of a product, failing to deliver as promised, misrepresenting their capabilities, or taking payment without delivery. These situations could all rise to the level of deceptive practice. This opens the door to potential statutory damages, attorney fees, and even treble damages in extremely serious cases.

Step 1: Review the contract 

Prior to taking any kind of action, you should carefully review your purchase agreement, invoice, or service contract. You’ll want to look for key provisions, such as:

• Delivery deadlines or schedules
• Force majeure clauses
• Payment terms and remedies for breach
• Dispute resolution clauses (mediation, arbitration, venue selection)

If your vendor breached an explicit term, such as a delivery deadline or product specification, you may have a strong contractual claim against them without invoking the CSPA.

Step 2: Formal demand 

A written demand letter is often the most effective first step. The demand letter will document your complaint, give the vendor the opportunity to cure the breach, and preserve your right to recover damages down the road. Your demand letter should:

• Summarize the transaction and failure to deliver
• Reference relevant contractual terms
• Set a clear deadline for response
• Reserve your right to pursue legal action under Ohio law

Sending a demand letter by certified mail creates a paper trail that can later become invaluable.

Step 3: Mitigate your damages 

Under Ohio law, the non-breaching party must mitigate its losses. In other words, your business should make a reasonable effort to find another supplier, adjust your production schedule, or take other steps to mitigate your financial harm. In addition, you’ll also want to keep detailed records of all your communications, costs, and delays caused by the vendor. These records can strengthen your claim if litigation becomes necessary.

Talk to an Ohio Consumer Sales Lawyer Today 

Kohl & Cook Law Firm, LLC, represents the interests of Ohio businesses that are locked in a dispute with a vendor. Call our Ohio consumer sales practices act lawyers today to schedule an appointment, and we can begin discussing your next steps right away.