A David vs. Goliath Story

At age 23, Phil McNeil decided to become a distributor for Mac Tools. This company sells socket wrenches, air tools, and the like to an industrial clientele: mechanics, machine shops, manufacturing plants, etc.

Distributors work an assigned territory, selling and delivering out of a UPS-type van. These jobbers are small businessmen who purchase their distributorships from Mac Tools, and who are responsible for keeping the truck in the road, stocking sufficient inventory, and meeting routine expenses as they come due. With some few exceptions, they must buy all their tools from The Stanley Works, owner/manufacturer of Mac Tools.

McNeil, of Grande Prarie, Alberta, has a disheartening, frustrating, and ultimately tragic story to tell about his experience with this company. His case history is set forth in detail at Case Study: Phil McNeil. After six years with Mac Tools (much of that time as a top producer, McNeil says), he has set up the Unofficial Mac Tools Homepage. As reported in his case history, McNeil tried repeatedly to address contractual and performance-related concerns to Mac Tools managers and executives. Finally, he took the company to court, but the company had the suit thrown out on the grounds that McNeil had agreed to an arbitration clause. Now McNeil says the company will not participate in arbitration.

McNeil's complaints may be summarized as follows:

- Allegation that Mac Tools' district manager misrepresented the business opportunity to McNeil (territory dispute; alleged low-ball estimates of operating costs).

- Allegation that Mac Tools' district managers (the distributors' support system) were constantly turning over and that much of the time there was no regional manager on duty.

- Allegation that inventory was often on back-order, even basic "bread-and-butter" merchandise, such as socket wrenches.

- Allegation that back-order problem was eventually solved, at least partially, by supplying inferior-quality product.

- Allegation that defects in this inferior-quality product caused excessive returns, which distributors had to bankroll out of their own pockets pending an adjustment from Stanley.

- Allegation that Stanley failed to properly keep bookkeeping and accounting records, that exascerbated cash flow problems, and that Stanley billed for unordered merchandise.

McNeil reports that Stanley/Mac Tools stonewalled, delayed, denied, or ignored his complaints and legal action -- but when he posted his anti-Mac Tools website, the slumbering giant awakened.

An email which McNeil says he received from Mac Tools' lawyers has been forwarded to me for review. This email threatens immediate legal action if the website is not removed. Among the

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