Legal Question in Business Law in California

Reseller Liabilities - Non-payment

We sell computer software which we offer a free demo version for. A reseller purchased our software with a purchase order and is late with payment. They indicated to me that they will not pay us because their customer has not paid them (an issue with our software not working as they hoped). Once the reseller purchases from us isn't the problem now theirs? Can they decide to just not pay because their customer isn't happy with the software that the reseller purchased from us and sold to them? No refund was ever asked for and there was no attempt to let us know the customer was not happy and was not paying. Legally, can we go after the reseller for the money they owe us even if the software they purchased isn't working as they had hoped. We put the responsibility on the customer to test and make sure it works properly before they purchase.


Asked on 9/16/04, 7:24 pm

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Reseller Liabilities - Non-payment

Please contact my office at 714 363 0220 to set up an appointment. I would like to review your written documentation including any letters, notices, and lawsuits. We handle cases throughout California. We can review your documentation by fax and speak with you by phone.

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Answered on 9/17/04, 1:54 pm
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Reseller Liabilities - Non-payment

Yes, you can sue them. You are not required to bear the risk that the customer can't or won't pay. You hit the nail on the head . . . their problems are not your problems.

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Answered on 9/16/04, 7:34 pm


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