what control does a company have over the price or method of selling (retail shelf, internet, or direct to consumer entity)once the company has sold the merchandise?
Example, I have an agreement with company A to sell my product via the internet. I have an agreement with another company to sell my product to retail accounts. Both companies I have the agreements with purchase my product at the same price.
Can I prevent the retail account from selling purchased product on the internet? (I did not sell the product to the retailer, the company with whom I have the agreement did)
Can I have any control over the price or the ''method of selling'' either sells the merchandise for?
2 Answers from Attorneys
Restricting sales or setting prices are difficult issues under existing laws, state and federal. Your question is too broad to answer specifically without more detailed information about the terms of contract under which product is made available to you by supplier. Under Uniform Commercial Code there appear to be no sections with specifically deal with your question but it would be worthwhile to research the FTC and federal restrictions on restraint of trade.
From the information provided, these issues are largely matters of the languange contained in the agreements. Your ability to control methods of distribution would have to be spelled out in the agreement.
Without seeing the agreements themselves, it is difficult to say what your rights are. If you have any interest in discussing this further, please call me at your earliest convenience at (215) 239-6026.
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