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Alex Esquire
Alex Esquire, Attorney
Category: Business Law
Satisfied Customers: 16394
Experience:  Experienced Licensed Attorney
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We buy and sell salvage truck loads of merchandise, 3 weeks

Customer Question

we buy and sell salvage truck loads of merchandise, 3 weeks ago we had a fella from texas call us and bought 3 loads of target return loads.. we told him what they were and the price and terms, as is, no refunds, which is very common in this business, anyway we were getting ready to ship these and he found out where we bought them and he could have bought them there cheaper himself, so now he wants a refund or is turning it over to federal fraud, I guess I'm not sure how buying and selling for profit is illegal..
JA: We have a 30 day refund policy so you can simply email***@******.*** and they will try to fix your problem or refund your money. What state is this in? And just to clarify, when was the purchase made?
Customer: we are in Minnesota, was 3 weeks ago,
JA: Has anything been filed or reported?
Customer: he had a lawyer call me last friday
JA: Anything else you want the lawyer to know before I connect you?
Customer: I guess I'm not sure why this would be illegal
Submitted: 22 days ago.
Category: Business Law
Expert:  Alex Esquire replied 22 days ago.

Hello. My name is Alex.
Thank you for your question.
I will be happy to provide you with information you are seeking for educational purposes only.

Do you have a company, that is legally registered, such as a corporation, LLC, etc... that engages in the business of selling returned merchandise?

Was there written purchase agreement signed by the buyer, that stated that the merchandise was being purchase in "as is" condition without any refund options?

What is the attorney for the buyer alleging?

Customer: replied 22 days ago.
we are a actual business, sole proprietor, he was emailed his copy of bill of sale the day purchase was made...
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

Did the buyer sign the bill of sale or any kind of a written agreement?

Is your business properly registered / licensed (if required) with the state or local authorities?

What is the attorney for the buyer alleging?

Customer: replied 22 days ago.
the transaction was done over phone very common, he was given his copy via email, and was fine with terms until he found out that we buy are stuff where he can to.. less the mark up.. so they said it was a fraudlent transaction
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

Did the attorney specify as to what part of the deal was fraudulent?

How did the buyer pay (cash, check, credit card, etc...?)

What is the amount of the total transaction?

Customer: replied 22 days ago.
I haven't talked to the lawyer yet.. he left me message.. 95% of all salvage loads like this are done by bank wire... this is how it was done... ive bought and sold many.. I always have to wire myself... he was fine with the whole deal unitl he found out that I get them same place he can buy... the 3 loads cost 44k thanks
Customer: replied 22 days ago.
when he called us...we told him exactly what the loads were and the price.. and the terms..
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

Did you comply with all the terms of the deal, such as the shipping timeline / deadline, etc...?

Customer: replied 22 days ago.
we told him would ship in 2 to 3 weeks .. and we tried to ship one last week that is when he through a fit.. because he can buy them for less than what he paid from us
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

How do you know that this buyer found out he can buy the merchandise at lower price?

Given the fact that the deal was for $44,000 worth of merchandise, did you consider having a written contract with all the terms, which would also be signed by all parties, so this type of the situation can be avoided?

Customer: replied 22 days ago.
he called me and told me.. that he wanted a refund or would be fraud..since he already buys from the place I buy from..... to be honest... ive never seen a signed contract in this business and its big business... and the fact that the deal was fine until the shipper called to confirm delivery and that is when he found out where I buy them...
Customer: replied 22 days ago.
I guess my main question is do you see anything illegal with this
Customer: replied 22 days ago.
95% of wholesale truck loads are done via wire, and over emails...
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

How did this buyer find you?

Do I understand correctly that you do not possess the merchandise, but rather "drop ship" it form Target or another company?

Did you ever represented that you were in actual possession of the merchandise which was sold?

Customer: replied 22 days ago.
we do facebook advertising and craigslist.. normal stuff, yes these loads are at warehouses all over country, and people like my self buy and sell them as loads or bring them in our store and sell individual.. yes.. he knew they were not at our location.. and would be shipped from separate location.. so no we never said we had it in our hands..
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

Did you actually purchase and owned the merchandise that was sold to this buyer, at the time the buyer agreed to purchase the lots?

Customer: replied 22 days ago.
u never buy them until sold... so yes we have them ready to ship to him
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

So what happens if the merchandise is sold by you, but then you find out that the warehouse sold the same lot that you sold to another buyer and you can't fulfill the order?

Customer: replied 22 days ago.
all these loads are indentical... there is no manifest .. just 24 pallets of goods from target.. they sell over 40 of these a month or better from there.. there is no certain items listed other than 24 pallets of goods
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

So, the buyer basically buys $44k of merchandise "blindly" without knowing as to what the merchandise is or its value?

Please bear with me, as I am trying to understand your situation better, so I can provide you with the most accurate answer.

Thanks.

Customer: replied 22 days ago.
pretty much.. target does put a percentage of new and estimated retail value of each load which was presented.. but no load is manifested to certain items
Expert:  Alex Esquire replied 22 days ago.

Thank you for your follow up.

While I cannot comment on your specific situation, generally, similar matter would be considered civil and not criminal, unless the seller made some material misrepresentations to induce sale or related to sale or the seller fails to deliver merchandise as promised and for which the buyer made the payment.

However, generally, if the buyer decides to pursue the matter civilly, if there is no written contract that was signed by both the seller and the buyer and is required for sale of merchandise according to the UCC and the seller failed to disclose in writing the fact that the seller does not own or have merchandise in the seller's possession, but simply acting as a broker, then not only the buyer will likely prevail to recover any funds and also would potentially recover attorney's fees and court costs.

I am very sorry to provide you with this bad news, but please understand that I do have professional obligation to provide JustAnswer.com customers with correct answers, even when answer is not favorable to the customer.

I wish you the best of luck and good luck!

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