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Direct sales--suing for $5k for selling inventory?

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ktlcorn

Junior Member
What is the name of your state? Nebraska

Several years ago I was a consultant for Creative Memories. It is a direct sales scrapbook company. Creative Memories is somewhat unique because you purchase and carry inventory. Most direct sales companies allow you to order when you make a sale so that you do not have inventory. I deactivated in 2000. My contract stated I was not allowed to sell my inventory online and if I was caught doing so, even after deactivation, they would sue for $5k with arbitration in the state of Minnesota.

I have held on to my inventory in fear of their wrath. However, some medical emergencies have sapped our cash reserves and I need to sell things to pay the medical bills. Does Creative Memories have a leg to stand on if I decide to sell my remaining inventory on Ebay? Ebay is the best hope for the best return. I hate to see several hundred dollars worth of inventory I'll never use just sitting there. I've heard through the grapevine that they can't really enforce this part of the contract. I legally own the merchandise and can they dictate how I dispose of it now that our legal relationship has been dissolved over 5 years ago?

Thank you,
Christy
 



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