on 25-05-2014 07:19 PM
Has anybody been told by a supplier not to sell their product on EBay but can on a website. We also have a shopfront and I cant believe that we can be told how and where we can sell their product?
Just curious if others have come across this and what your approach is?
Thanks
25-05-2014 08:12 PM - edited 25-05-2014 08:15 PM
I haven't, but yes it can be done. It can be stipulated where and when items can be sold and for how much.
We studied this at Law School
a case (I think) Dunlop Pneumatic Tyres from the top of my head.
They can also stipulate at exactly what price you must sell, whether you can mark up or discopunt or offer any other variances etc such as buy one get one half price.
on 25-05-2014 08:14 PM
Yes and it doesn't bother me.
on 25-05-2014 08:14 PM
they may have others that buy from them in bulk and have negotiated exclusive rights to sell on eBay. If they supply to you and you sell on eBay it may jeopardise their other customer contractual arrangements.
on 25-05-2014 08:16 PM
I would have thought that you would have to sign a franchise agreement for the supplier to make those restrictions.
on 25-05-2014 08:16 PM
Dunlop Pneumatic Tyre Co. Ltd. v Selfridge & Co. Ltd
on 25-05-2014 08:19 PM
@ajarnjenny wrote:I would have thought that you would have to sign a franchise agreement for the supplier to make those restrictions.
a franchise agreement?
any sale is a contract and the contracting parties can stipulate any terms of the contract they want. As long as they both agree, then the contract is enforceable.
(and as long as it is legal)
If one party does not agree with one of the terms of the contract, then they obviously shouldmn't enter into the contract with them.
on 25-05-2014 09:15 PM
Completely against the Trade Practices Act of Australia for a supplier to tell a reseller what price to charge . If you look under the '' Retail Price Maintenace Act '' you will find the full details
A number of Australian based corporations in recent times have been fined huge amounts for telling their customers at what price to sell their product for .
on 25-05-2014 09:44 PM
Those happened after the initial contract was formed.
26-05-2014 12:03 AM - edited 26-05-2014 12:03 AM
Completely against the Trade Practices Act of Australia for a supplier to tell a reseller what price to charge
I can think of a lot of brands that are sold for the same price in many different stores. Stores would buy the stock direct from the brand owner.