Legal Question in Consumer Law in California
Is it legal for a supplier to sell directly to a compeditor for less than whan I can buy at for at distribution. Example: A SonicWall TZ 210 Wireless retails for $1252.00 Sonicguard.com sells it for $939.95. My cost from SonicWall through distribution is $1022.43. A net loss of $83.
Asked on 10/24/11, 12:48 pm
1 Answer from Attorneys
It is generally not legal to sell products at a loss to harm competition. However you are assuming $939.95 is a loss. You are leaving out the distributor's mark-up. For all you know SonicWall sells it for $939.95 to your distributor too.
Answered on 10/24/11, 12:57 pm
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