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  1. #1
    Join Date
    Jan 2010

    Default Manufacturer's Right to Restrict Redistribution of its Products


    I have recently started up a company drop shipping products from the US to the UK. Our main interest recently was golf clubs even though we are not an authorised retailer, however after being in contact with one major golf brand it was brought to our attention that in order to become an authorised retailer to need to have property, presumably this is space for their stock. They also mentioned that in the contract signed by an authorised reseller it states that they will not participate in any "selling on" of their products.
    Should a problem such as this deter us from going ahead with drop shipping these items? Or if we are lucky enough to find a supplier who is willing to drop ship the products should we proceed?
    Is it possible for the golf brand company to find out where we get our products? Do they have the right to do so? And if so will the drop shipper be in breach of their contract and will both our company and theirs be liable?

    Thanks in advance to anyone that can offer some guidance, as we really don't want to go ahead if there is a risk.

    If there is something that is unclear give me a reply and I will try to make it clearer. I can also post the reply I received from the golf brand if that might help?

    Thanks again

    Chris King

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Manufacturer's Right to Restrict Redistribution of its Products

    If you violate your contract with your supplier, you can expect that they'll terminate the contract. If you find a middleman who is willing to violate its contract with the supplier, if that's what it would take to drop ship, you risk the relationship between the manufacturer and drop-shipper that would leave you unable to fulfill your orders.

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