If a company refuse to renew an annual contract with a vendor and gives an

[johnfarber2000]

illegal reason for not renewing? If a company refuse to renew an annual contract with a vendor and gives an illegal reason for not renewing (like "she is too black or she is too old), is the company liable?
What if the reason is not illegal, but the reason is untrue?
Tim: unethical and immoral reasons is one thing, but untrue is something else.
Michigan, USA

[Frank Castle]

Companies don't have to explain themselves to vendors.

[Tim F]

Please provide more specific information about the jurisdiction (country, state and city), about the type of business of the company and the vendor, and about the type of notice that was given. Without this information, an accurate answer cannot be provided.

In general and in most places and for most companies, it is unethical and immoral, but it is not illegal to refuse to renew an annual contract, even if the reason is unethical and immoral.

But there are exceptions, which depend (again) on the jurisdiction, type, etc. Please repost your question with these additional factors.

Hope this helps.

[Alletery]

When a contract has expired, you are free to do as you wish. Giving a reason is optional and is only requested by the company loosing the contract as feedback to improve their services. Even if you are giving a false reason or making a slur, it would not make you liable unless you went public with it. (Example: Like telling the newspaper that ABC Company is testing on animals when they are not).