Restrictive clause by manufacture to retailer.

[W124Bob]

Simply would a clause by a manufacture when supplying to a retailer (paraphrasing)"you must not sell our products online to overseas customers" be legal,further test purchases will be made and any retailer found selling to an overseas address will not get future supplies. This does not apply to products supplied via a wholesaler, but there is a whole raft of other issues regarding this manufacturer.

[anonymous-user]

As this is presumably a real life business legal issue why not pay for some real life business legal advice?

In any event, no lawyer can offer any sort of sensible advice without seeing the precise contract term in question, and knowing the precise business context in which the clause is to take effect.

In principle, a clause of this kind might be enforceable, but it might raise issues under English and/or EU competition law. Competition law is not straightforward. If this is important to your business, then this forum is not the place to find an answer. Don't be a cheapskate; take professional (insured and tax deductible) advice.

Edited by anonymous-user on Saturday 29th March 11:06

[elanfan]

Surely if said retailer sold these products to another entity and that entity then sold them online could there then be any issue?

If so just set up a separate business for the online stuff.

I guess this is all about manufacturers retaining premium pricing in certain areas of the world where their product is perceived as being worth more and the online sales could adversely affect their sales in particular markets. I can see why they'd want to do that - not saying it is right mind..

[Jon1967x]

Enforceable? Doesn't matter, a manufacturer doesn't have to sell to a retailer so break at your peril. Why do you think apple products are the same price everywhere? Anybody goes against them, the supply chain gets cut off.

[anonymous-user]

elanfan said:

Surely if said retailer sold these products to another entity and that entity then sold them online could there then be any issue?

If so just set up a separate business for the online stuff.

...

There you are OP, some worthless bloke in pub claptrap for you. Or, you could take advice.

[W124Bob]

I did ask whether the trader had asked for clarification, and was shown clause 8 of the manufacturers T&C's the wording was ambiguous as whether it referred to selling to any overseas customer or selling to an overseas trader for resale. Other traders had also taken issue with this and received no satisfactory response. Having checked further it would certainly break UK/EU law to restrict customer sales to UK only, whether it breaks the rules of other non EU countries I have no idea. The whole T&C issue seems to have upset many small traders dealing with this manufacturer, poor supply,small orders turned down,new products announced but then not appearing,to mention just a few.

[anonymous-user]

As you are apparently an expert on EU law, why are you asking some people on a car forum about this?

PS: A tip: Maybe do a bit of Googling on block exemptions and EU Regulation 330/2010 before being so certain.

Edited by anonymous-user on Saturday 29th March 15:03

[reefer]

Is this Hornby by any chance ?

[Martin4x4]

American company? Sounds illegal under EU competition law.

[anonymous-user]

I'd be interested to hear how you figure that out without knowing what the contract says or what the business context is. I assume that you are familiar with the Regulation that I referred to above and with all the relevant case law.

[gjf764]

Nothing constructive to add but I do love threads like this....

[Lurking Lawyer]

I can hear the gnashing of teeth from all the way up here in Cheshire, Breaders

[anonymous-user]

Nar, me teeth are in the glass of Alka Selzer by the bed. I am merely being entertained by all the expert pub Eurolawyers.

[W124Bob]

Hornby is correct, traders still seem confused despite being told verbally selling is OK to individuals abroad, nothing has come from head office. Hence some looking at what laws,if any, can be used to force Hornby to once and for all clarify the trading position. The supply issues are probably not all Hornby's fault since other manufacturers have had similar issues with China.

[anonymous-user]

If the issue affects several traders, they should each subscribe a modest sum and seek expert legal advice for the benefit of the whole group. There are only perhaps two or three people who post here regularly who are remotely qualified to advise you on this issue. Well meant but amateur advice from non lawyers is likely to be worth zip in real world terms. I don't, in general, do freebies for businesses, and in any event can't advise without seeing the contract and knowing the surrounding factual context.

You appear determined to ignore my attempts to point you in the right direction, so, as the saying goes, I'm oot.

I shall leave you with Regulation 330/2010, just so that you can see how simple and not at all complex all of this is.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?...

Edited by anonymous-user on Sunday 30th March 12:14

[W124Bob]

Your quite right Breadvan72, I believe (as told to me)a number of retailers are/will consult professional advice, but when Hornby's own sales reps can't give a definitive answer it's does make you wonder what's going on within the company. This whole sad affair has been rumbling on since late last year and the company has still failed to properly answer traders questions either individually or collectively. I'm only a frustrated customer waiting for new releases, pity the trader who can't even give concrete prices or approximate delivery dates.

[Devil2575]

So the problem is you want to buy something from a foreign retailer that has yet to be released in the UK?

[elanfan]

Breadvan72 said:

There you are OP, some worthless bloke in pub claptrap for you. Or, you could take advice.

Oi G, I only asked a question.

[W124Bob]

Devil2575 said:

So the problem is you want to buy something from a foreign retailer that has yet to be released in the UK?

No,I want to buy from my local retailer who has no idea when if ever certain items will be released,items which appeared as real models (demo pics)2years ago in Hornby press releases. There have been issues regarding the plant in china where Hornby (and others including US companies) have there models produced. It seems to boil down to poor communication between Hornby and the retailers over an issue which could have been sorted in days,instead of lingering on for months.