Business Breaking Contracts With Dealerships

[Geoffrey]

Hello friends,

A fairly large corporation I have been observing for quite some time now has broken their side of the contract. This corporation manufacturers small transportation vehicles, and offers people to become a reseller for these products.

Before you can become a reseller, you must obviously have a dealer license and agree to a contract created by the manufacturer. However there is a problem with the contract dealers are signing as shown below.

"This policy stipulates that the Dealer will not advertise or publish any price for a product which represents more than a 15% discount from the current published list price on all products. This policy applies to advertised or published prices in any form of print media, catalogs, radio, TV or the Internet. Violations of this policy, including, but not limited to, lowering published or advertised prices by means of coupons, give-away incentives, special discounts on products or shipping, or internet auction opening bids, may result in cancellation of authorized dealership status."

Many top rated online resellers for these small transportation vehicles infringe this contract by indeed adding coupon codes and give a way items.

I went ahead and contacted the manufacturer of these small transportation vehicles and informed them that resellers are infringing their contract with coupon codes and give a ways. However they replied with "We offer some flexibility around this policy, e.g. free shipping and small use of coupons, as long as they stay within the spirit of MAP."

My question to you is...
Is there anything I can do about them allowing businesses to have coupons and give a ways when their contract states they can not? How can large corporations get away with infringement of their own license agreements?

Best regards,
Geoffrey
State of California

[Mr. Knowitall]

The business is waiving its own rights under the contract. If you're a customer, use the coupons and enjoy the discount. If you're an authorized reseller, consider taking advantage of the flexibility.

[Geoffrey]

The business is waiving its own rights under the contract. If you're a customer, use the coupons and enjoy the discount. If you're an authorized reseller, consider taking advantage of the flexibility.

Since this is a legal contract to which both the reseller and manufacturer must agree upon, if there is leniency on one part, shouldn’t that void the entire contract or at least bring about circumstances?

If you were give a business your home address and sign a legal contract that states "We will not give out your address to anyone whatsoever"

Then the business you gave your address to decides to add a little flexibility to the contract and start giving out your address to spammers and advertisers, shouldn’t that break a law of some sort?

Geoffrey.

[Mr. Knowitall]

Since this is a legal contract to which both the reseller and manufacturer must agree upon, if there is leniency on one part, shouldn’t that void the entire contract or at least bring about circumstances?

Why would it do that? Why do you care?

Another example might be a lender allowing a borrower to make a late payment. The lender may well have the right to initiate foreclosure, repossession, or a collection lawsuit, but the lender can forego those rights without affecting the enforceability of the contract (save for potentially creating a pattern of conduct which will later require that it continue to accept late payments in lieu of enforcing its other remedies).

] If you were give a business your home address and sign a legal contract that states "We will not give out your address to anyone whatsoever"

Then the business you gave your address to decides to add a little flexibility to the contract and start giving out your address to spammers and advertisers, shouldn’t that break a law of some sort?

You have it backwards. The company is waiving its own rights. If you later allowed the business to release your name despite the prior agreement, it would be your right to waive the privacy agreement.

[Geoffrey]

I will present to you an example.

A current reseller for these products offers a coupon code, free shipping, free lubricants, free gas tank cover and a helmet for $.50.

The contract this reseller agreed to states "...Violations of this policy, including, but not limited to, lowering published or advertised prices by means of coupons, give-away incentives, special discounts on products or shipping, or internet auction opening bids..."

This reseller breaks the contract in 3 ways, and there is NOTHING I can do about it? No circumstances?

[Geoffrey]

You have it backwards. The company is waiving its own rights. If you later allowed the business to release your name despite the prior agreement, it would be your right to waive the privacy agreement.

I never said that the person gave the company permission to give out the persons address. The business went ahead and gave the information out with out any permission.

Since this is not the issue, please respond to the post above and not this post.

Geoffrey.

[lwpat]

Answer the question. What do you care and what standing do you have?

The corporation is free to waive the requirement in the contract. That is all you need to know and you have been told that several times.