Legal Question in Business Law in Michigan

Reseller Merchandise

I am an online consignment resaler of children's clothing. A retail clothing line that has been in business for 10 years has apparently been producing vintage recycled Harley Davidson shirts without the HD knowledge. These shirts are couture and sold at several designer boutiques and department stores around the country. They found the shirt on my online ebay site and have had these items removed by ebay, who has since notified me that selling illegal merchandise may be grounds for shutting down my business. This has lowered by search ratings and consumer confidence and already affected my bottom line. However, several more sellers have the same merchandise posted and have not had them removed, nor has HD contact the manufacturer (I spoke with them yesterday) and they have not contacted any other retailer. Do I have a claim for discrimination and lost sales and reputation?


Asked on 1/28/09, 5:42 am

2 Answers from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Reseller Merchandise

Your shirts are known as grey market goods. The owner of the federal or other trademark has the ability to contact any and all entities that are marketing the goods. The entity usually sends out a cease and desist letter to stop selling and/or marketing these goods.

Just because they found you does not mean that they will not find the rest. There is no discrimination here based on the facts that you present.

You might want to set up a licensing agreement with HD to sell their goods with a royalty payment to HD.

Good luck!

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Answered on 1/28/09, 6:13 am
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Reseller Merchandise

If you were doing something wrong or illegal, even if by accident, then it is not discrimination for the company, or ebay, to take action to hinder or stop your activities. I would suggest opening a new ebay account w/ a new user id if you are really that concerned about it.

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Answered on 1/31/09, 10:24 pm


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