Legal Question in Legal Ethics in California
advertising products for sale
I have been purchasing products from a manufacturer for almost 3 years for the purpose of resaling them in my business. They resently increased my price and as a result, I refused to buy additional products from them. I still have products purchased from them in my inventory that I am trying to liquidate. One of my means of advertising is via my company website, which has been on line since the beginning of our business relationship. I recently received a note through my website inquiry telling me to delete all reference of their company products from my website. None of the documents or agreements with them indicate I am at fault. I purchased the products from them for the sole purpose of resale at their full knowledge, and 90% of the products are still in their packaging. Is there a legal basis for their demand? Since their demand was not formally presented on their letterhead should it be ignored or should a response be generated?
2 Answers from Attorneys
Re: advertising products for sale
You might do well to re-submit your question under the Category of Intellectual Property, because trademark issues (an area in which I do not specialize) are the only potential problematic area I see. Other than that, I would have to see your purchase agreements, invoices, bill of lading, and any other potential written agreements between you. You state that nothing in the documents or agreements with them indicate you are fault, but that is really for an attorney to analyze, if you want assurances. Did you have any oral agreements with the company?
Re: advertising products for sale
I do not see the same problem as does Mr. Lee.
If I understand you properly, you bought products cheaply from a company for resale (i.e. Multi-Level Marketing, or Network Marketing). The company has now raised both wholesale and retail prices, and does'nt want you to sell so cheaply.
If this is not correct, just ignore the following. I see it as a contracts problem. What did you agree to with the company? You may want to run this by an attorney.
If you agreed to respect the company's pricing, they are correct. Also, see if you agreed to adjusting the price when the company did. I suspect your contract with the company favors the company.
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