Scuba
Contributor
scubatoys:There are some very interesting legal issues at play here, and I'm not an attorney, but half my family is, plus I have several more on retainer... So I will lay out the layman legalize version and I'm sure we have plenty of attorneys on the board that will give us their take... A manufactured product comes with a manufactures warranty from the company. A company can choose who they sell to. They can say the product carries a warranty to the original purchaser from the retailer, thus if shop A sells to Shop B who then sells to a customer, there is no warranty... But if a manufacturer sets up a dealer, and sells them product at a price that includes a warranty, and that dealer sells that product, even after the dealer agreement has ended between the parties - they cannot void the warranty on those products.
(following paragraph has been taken out of order)
So it might be accurate that most people selling their product on line got it somehow that violated SP policies... if they sold it to someone, that might not have a warranty, but for a store that bought the product through their normal channels, and as recently recieved product as 3 weeks ago, they cannot simply recind the warranty on that product. The price I paid for the product, included a warranty - it stays in tact.
I'm not an attorney Larry, but I'll take a shot at it based on some business knowledge in retail, as this is an interesting case. After termination of a dealer agreement you have the right to liquidate remaining product, possible exceptions not withstanding. The manufacturer warranty remains valid during liquidation, I think that's the norm in much of retail. Here is where you make it interesting, you are now selling remaining stock using a dealer agreement non allowed method - Internet, which voids the warranty according to SP quotes on here. Not being an authorized dealer any longer, which I infer is the case, you are not bound by the terms of agreement. Yet, you have full knowledge being a prior dealer that selling product online voids warranty. An interesting case indeed. I'm not sure how much, if any, specific case precedent there may be. Internet case issues are sometimes treated different than standard non Internet cases. These cases are fairly new and being established.
This warranty issue is a legitimate concern for consumers. I would suggest anyone who may be affected and is concerned by it, ask SP to clarify this case. Since they are the one's issuing the manufacturers warranty. This potential manufacturer retailer dispute may affect the warranty to consumer. So if you want to be sure, find out, call, send email and save with product receipt. In practical terms this is probably not much of an issue or easy to overcome, unless SP wants to make an example out of this case, which I would very much doubt.
Having said all that, I must say that I have not had the pleasure of doing business with Larry, yet. That's no small complement coming from my critical skeptical self. Larry and ScubaToys have "earned" quite a reputation here for taking care of their customers. This is one thing we can count on - perhaps the most important aspect in a seller and buyer relationship. Thank you Larry, there ought to be more like you!
In fact, to avoid the restraint of trade laws, all the dealer agreements from all manufacturers state that you can do whatever you want with product after you have it..., the manufacturer is not setting price, distribution, etc... they just have the right to no longer ship to you if you don't follow their policy... Otherwise, they would have a serious fair trade investigation... And this came straight from an agent at the DOJ that I talked to...
If a manufacturer can take action over a dealer not following policy they are in fact setting policy. The law is what it is. It is applied the way it is. But the practical effects of price control, and imposition of general limits on retail competition - is available today in the USA to any manufacturer/marketer who desires it. It exists within limits. Nothing like guaranteeing the retailer a minimum profit margin on a product. Retailers love it, it limits the issue of price competition. There are enough other challenges.
This is not in the interest of consumers - overall.