Breach of contract due to contaminated products
I am under contract as a licensed provider for a certain line of health and beauty products. This contract states that I am not to use/sell any other products (by another manufacturer). I have learned that the products distributed by this company have repeatedly failed FDA inspections (6 years in a row) and have been found to contain harmful levels of bacteria, yeast and mold. The company simply uses legal stall tactics to avoid making the necessary changes to comply with FDA Safe Manufacturing Guidelines. When they are cornered, they simply move their productions to a new lab.
The company has failed to respond to numerous phone calls, emails and certified letters to answer my questions and concerns about their products. I finally concluded that the products are indeed unsafe and stopped purchasing from them. In order to stay in business, I have begun buying products from another company.
Now, the company is threatening to sue me for $1,000,000. For breach of contract because I refuse to buy their products.
Can they in fact sue me for refusing to expose my customers to contaminated products? Am I in breach of contract... or are they in breach of contract?