Is a distributorship agreement that prohibits the distributor from engaging in any network marketing enforceable?


Dean was a distributor of Tahitian Noni products who, in violation of his distributor agreement, solicited members of his downline to drop Tahitian Noni and promote a competitor’s products. Tahitian Noni moved for an injunction prohibiting Dean from promoting the competitor or any other network marketing company based upon the distributor agreement which prohibited Dean from engaging in any other network marketing program while he was with Tahitian Noni.

Case and case summary are also available at: http://www.mlmlegal.com/legal-cases/TahitianNoniInternational_v_Dean.php

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Reference Info:Federal, 10th Circuit, Utah | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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