Legal Question in Technology Law in Illinois
Selling on the Internet
We are a local golf shop that has been selling golf equipment in our store and on the internet over the past 18 months.
We were always upfront about our selling on the internet and complied with the manufactuer minimum advertised price and other internet requirements.
A few days ago one our the major manufaturers told us we could no longer market on the internet because we did not meet the terms of their internet retailer agreement leavin us with $20,000 in unsold inventory.
Meanwhile they have allowed us to sell on the internet and told us we needed to increase the amount of inventory we carry to do so. In the last several months they have developed thir own internet site and know tell us we can not sell on the internet and stick us with the equipment.
My two questions are 1) Given the prevelance of the internet, can they legally restrcit us from selling on it if we are adhearing to the internet policies and 2) Do we have a case to return the equipment to the manufacturer since they sold it to us knowin we were going to sell it on the internet?
Please let me know.
Bob
1 Answer from Attorneys
Re: Selling on the Internet
There is no quick answer. Generally, a manufacturer can limit the channels through which a retailer can sell. Obviously, you have facts that may change the general answer (but remember, the manufacturer's side of the story will probably not be the same as yours). You may be able to make a case that they have implicitly (if not explicitly) consented to your internet sales.
It is certainly worth continuing to push your position.
David K. Staub, an Illinois business attorney
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