Bouchier said the school phoned her two years ago to tell her they had an exclusive stockist and she would have to buy the uniforms through them.
She said the school wanted to make money from uniforms and was charging more than the uniform she had sold.
Tauranga Boys' College filed an injunction to prevent Active Schoolwear selling imitation college uniforms. Active Schoolwear was found in court to be manufacturing its own version of boys' college uniforms and ordering them through the college's authorised uniform manufacturer, ISC Lenco.
The matter has been settled out of court as Bouchier said she could not afford the legal fees.
She said the settlement would mean she would have to pay the school's legal expenses and compensation to the school.
"They are getting money for nothing and are trying to create a condition that I can't speak to the media," she said.
Bouchier said taking the matter to court was ridiculous and treatment by the school had been ruthless.
"They have clearly spent thousands of dollars in government funds in legal costs, to force us out of the market."
She said the school was contravening the Commerce Act by creating a monopoly situation.
Tauranga Boys' principal Robert Mangan would not respond to questions from the Herald on Sunday.
Principal of Tauranga Girls' College Pauline Cowens said the school had a positive supply arrangement with Active Schoolwear and Schooltex, a branch of Postie Plus.
She said the school's monogram was jointly owned by Tauranga Girls' and Tauranga Boys' who had previously been one school.
"We have two suppliers because we believe parents should have choice," she said.
Law prohibits restrictions on competition
The Commerce Act prohibits business conduct that restricts competition, and applies to all individuals and businesses engaging in trade. School boards of trustees should:
* Consider parental choice when deciding if they will have a sole-supply agreement.
* Use their bargaining power with manufacturers or suppliers to negotiate competitive deals.
* Approach a number of potential suppliers to secure the most competitive prices.
* Conduct competitive tenders on a regular basis in the case of exclusive arrangements.
* Appoint multiple suppliers if the demand is likely to be sufficient and choose supplier/s on the basis of objective criteria such as the lowest price for appropriate quality.