jecasc - 9:41 pm on Apr 27, 2011 (gmt 0)
Normally you could have a good case. (At least if you were located in Europe) The alleged TOS violation is years old. Also it was very minor if it was a breach at all and it did not have any impact. And if you have a clean record since then, there is no reason at all for a cancellation of the contract.
If something like this would happen to me I would probably research the legal background a little more, check if an obligation to contract might exist, and instruct a lawyer to write a polite but firm letter threatening legal action and hope they would back off. Which is not that unlikely.
And if that would not help I would contact Anti-Trust authorities. (No you and your case are not too small for something like that, it's not your size that matters but that of your opponent.) I did that once when I had a problem with a supplier. I wrote a letter telling them of my problem and asked for a short assessment if they considered his actions illegal. I received a positive answer, forwarded it to the supplier and he backed of. (Actually this one letter has been of use three times now in similar disputes with other suppliers.) The good thing with getting public authorities involved is that it is usually free and most companies absolutely hate it.
In the past I have made the experience when I hit a wall inside another company it was only because the guy handling the case was a jerk and once I got attention on a higher level reason kicked back in. But as always with legal questions, laws are different from country to country and it is always the question how much time and money one is able and willing to spend.