Legal Question in Business Law in California
Bussiness Dispute-goods
I received a shipment that arrived late by a month and we notified the vendor to take the container back and they didn't respond so we gave them 15 days to make a decision and they didn't reply in any way. Does this mean we can sell the plush toys at a 50% discount price to reduce the cost on the merchnadise? Because there is around $1,000.00 a month for storage and if we sell it then it won't occur. So can we sell the merchandise at a close-out price of 50% off?
3 Answers from Attorneys
Re: Bussiness Dispute-goods
Answering the question would require knowing whether the sale was FOB port of origin or whether you paid a delivered price, i.e., who arranged for the transportation (if the late delivery was the carrier's fault); or if it was the manufacturer who shipped late, does the contract specify a "not later than" date or is the manufacturer's responsibility not clearly specified?
Have you paid for the merchandise? If so, why would the manufacturer have anything to say about what you sell it for?
This is an international transaction, of course. Does the contract specify what body of law applies to its interpretation and enforcement?
There's just too much mystery about the whole deal to allow an answer.
Re: Bussiness Dispute-goods
There is no way to answer your question without knowing what your sales contract says.
Re: Bussiness Dispute-goods
No one is going to foolishly tell you what to do or not do, without full review of the documents and all facts in the situation. Even then, you will be proceeding at risk of lawsuit, no matter what you do unless you can resolve the dispute by agreement - that's what the attorney is also for. Feel free to contact me if you want such actual advice.
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