Lund v. Arbonne Inc.

When is a distributor agreement at-will under Oregon law?

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The Oregon Court of Appeals held that an agreement that is otherwise silent about its term length is terminable after reasonable notice. Lund acted as an independent distributor of Arbonne's beauty products. Three years after she joined the company, they amended their policy manual to prohibit "cross-sponsoring" or sponsoring other members of a distributor's downline to distribute the products of another company. The distributor agreement that Lund signed did not contain any cross-sponsoring clause or termination provisions. The Court held that because the agreement did not specify any termination provisions, the default rule, termination at will on reasonable notice, applied.

Full case and case summary are also available online at: http://www.mlmlegal.com/legal-cases/Lund_v_ArbonneInc.php

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 9th Circuit, Oregon | 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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