Reselling

[JohnMag4u]

What is the name of your state? PA

Do you need manufacturer permission to resell their products? For example going to Nike.com and purchasing sneakers and then selling them in my store. Also, can I put in my store window, “Nike Sold Here” ? I have a PA Tax ID # and a registered business name.

I do not plan on actually using Nike, that was just the first brand name I could think of.

Thanks in advance.

 

[clueless3]

When you want to be a retailer of a product, you normally do not buy directly from the manufacturer (unless you are very big or the manufacturer very small); you normally buy from a distributor of that manufacturer's product. You contact the distributor, get the application and apply to be a retailer, provide your credential, buy from them, and resell the product. By default, when you go through this process, you get the permission to resell, implicitly. (Regular consumers can't buy from distributors; they have to buy from retailers. Retailers can buy from distributors, but they have to buy in large quantity to get the discount.)

 

[JohnMag4u]

But...

I understand that a reseller buys from a distributer (as I do for many products). Certain things I want to sell are only available directly from the manufacturer. Given this, what would you say to my original question?

 

[seniorjudge]

Q: Certain things I want to sell are only available directly from the manufacturer. Given this, what would you say to my original question?

A: You ask for permission when you get them directly from the manufacturer.

 

[JohnMag4u]

So then...

If the manufacturer has the right to say that I cannot resell their products what if I purchase the products from a reseller (ex. Walmart); do I still need manufacturer permision?

Thanks Again!

 

[racer72]

If the manufacturer has the right to say that I cannot resell their products what if I purchase the products from a reseller (ex. Walmart); do I still need manufacturer permision?

Thanks Again!

Second sale doctrine does not apply to items sold as new from a retail establishment, this means a manufacturer and/or wholesaler can limit who sells their products. The manufacturer can also deny warranty and other claims for merchandise sold by an unauthorized dealer. You could also be liable for advertising and promotions costs if you were to benefit from these actions. A worst case scenario is a representative of the manufacturer showing up at your retail establishment with some police officers and a court order allowing the rep to seize all merchandise you are not authorized to sell.

 

[JohnMag4u]

Thanks

That answers my questions. Thank you so much!