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MDLaw
MDLaw, Attorney
Category: Business Law
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Experience:  Experience in business law, contract law and related matters.
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Hi, I am interested in buying some items off an online site

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Hi, I am interested in buying some items off an online site to resell elsewhere (I am in California and company is in Pennsylvania if that makes a difference). I would normally be comfortable about this, but the websites terms and conditions state they "[offer] merchandise to consumers through this Site and its retail stores. [Company] is a retailer, not a wholesaler, and does not sell to
individuals or dealers for the purpose of resale to others. [Company] reserves the right, in its sole discretion, to limit the quantity of items
purchased per person, per household or per order. These restrictions may be applied, at [Company's] discretion, to orders placed by the same
user account, the same credit card and/or orders that use the same billing or shipping address.

I know it's their right to limit order quantities, but they say they don't want their items resold. So, if I go ahead and buy a bunch of stuff there and resell it, would that be a breach of contract with a legal basis for a lawsuit or would it be perfectly legal since I would be the new owner of the products?
Submitted: 1 year ago.
Category: Business Law
Expert:  MDLaw replied 1 year ago.
Hello and thank you for using the Just Answer website. I look forward to assisting you this morning. Please remember that this site is intended for legal information only and the information given is not intended to be legal advice.

If you were to buy their items for the purpose of resale and they found out about it or suspected it due to the quantity of your purchase, the most they could do is ban you from buying from them which is their legal right. Unless you signed an agreement stating that you would not resale, it would be unlikely that they would pursue a breach of contract case. There might also be intellectual property issues involved. But with respect to breach of contract, it most likely wouldn't be worth their time. It is more likely that they would pursue IP claims depending on the amount of money and items involved.

Customer: replied 1 year ago.
Ok thanks. Just to clarify, you said it's unlikely they'd go after a breach of contract case, but is it actually a breach of contract if I purchase with intent to resell. If it is, then why do you say it's unlikely they would go that route?

As for the ip route, don't I have the right to describe the item or put a picture of the item I am selling without having to worry about copyright or trademark infringement?
Expert:  MDLaw replied 1 year ago.
As stated previously, it's only a breach of contract case if you have an agreement with them that, in return for your purchase, you agree not to resell for profit. I say that it is unlikely because most of these types of cases are litigated on IP grounds.

You are misunderstanding IP law. Trademark dilution is what the term would be - not infringement.


Customer: replied 1 year ago.
Ok, now does that agreement count under the terms and conditions of using the site? Because it says something like by using this site, you agree to these terms and conditions. Or is it only an agreement if I sign it. Just trying to cover my bases here.

Also, with respect to trademark dilution, I would be selling the same, unadulterated product which would not be tarnishing their brand name or be causing confusion for customers as to the source of the product. Would I reasonably be in the clear here?
Expert:  MDLaw replied 1 year ago.
Yes, if the terms and conditions of making the purchase state that, then that could be considered a contractual agreement. All factors would need to be reviewed, of course. No, a written signature is not required.

I cannot predict what the outcome of any future hypothetical litigation would be, for obvious reasons.

Please let me know if you need any additional information. Thank you in advance for your positive rating and please feel free to request me for any future questions.

MDLaw, Attorney
Category: Business Law
Satisfied Customers: 5853
Experience: Experience in business law, contract law and related matters.
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