Selling as an Unauthorized Dealer

Discussion in 'Growing and Managing a Business' started by TheGrandAdmiral, Nov 2, 2014.

  1. TheGrandAdmiral

    TheGrandAdmiral
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    Some items that are bought in stores say "not for Resale" or "Only to be Sold by Authorized Dealers". If I am not authorized as a dealer, would there be legal ramifications to deal with if I tried to sell these items online over Amazon, eBay, or Taobao?
     
  2. webdesignphx

    webdesignphx
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    Yes I believe there would be. However, I am not sure. This is a good question, anyone else have any thoughts on this? I am curious to know as well. I always just assumed there would be.
     
  3. Joseph.Shivell

    Joseph.Shivell
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    Like webdesignphx, I am not sure about the legal ramifications in most cases. I do know that when a paperback book has it's cover removed, it is reported as "destroyed", and the author and publisher do not receive any of the funds paid when the book is then sold. Since the author wrote the book, and the publisher paid their employees involved in publishing the book, they should receive a portion of the proceeds from the sale. I do not, however, know if their is a specific law that covers this.
    When an item is "Only To Be Sold By Authorized Dealers", the manufacturer has likely has a contract with the authorized dealers, and these dealers must meet certain conditions in order to become "authorized". This allows the manufacturer to control how the item is sold, and, where applicable, serviced. Again, I don't know if there is an actual law to cover this.
    I'd like to approach this from a different angle. What would happen if Amazon, Ebay, or similar sites discovered that one of their members was selling items that are "not for resale"? Or, what if they found out that someone selling items that are "Only To Be Sold By Authorized Dealers" was not an "authorized" dealer? I would think they would be concerned about their reputation, and would put a stop to it, or not allow it in the first place. What about the seller? If their customers found out that the seller should not be selling an item, or was not an "authorized dealer", would they still be willing to buy? Would the seller's reputation be damaged, and would the seller even care? If the seller doesn't care, I would not want to encourage people to buy from them, nor would I buy from them myself.
     

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