Is this illegal?

[Triple 6]

I sell a product, where I also sell the rights to resell that product. I have terms that a reseller must abide by in order to resell the product, and one of those terms is that they cannot sell the product lower then a certain price ( $150 is the limit, publically), but, they may sell at any price they wish on a one-to-one (private) basis.

The reason I stipulate they cannot sell for lower then $150 amount is to protect me, and them, from someone coming along and selling it for, say, a $1. The product is software, btw.

Now, is this illegal? If so, why?

[milkit]

why would it be illegal?

[pornguy]

Why are you asking on an adult webmaster board. they do have things called attorneys.

[Fake Nick]

can you change your location to "I have no business knowledge" ?


thx

[Triple 6]

Why are you asking on an adult webmaster board..

because i can

they do have things called attorneys

No kidding. Is it illegal to ask legal questions on the internet? Or should I have to call a lawyer on that one too?

[BRISK]

illegal according to who?

[jimmyf]

it's legal for them 2 sell it for any price they want to.

They can sell it and loose money if they want and this is call getting market share, selling at a loss or near loss.

they can sell it for $ 500.00 if they want and this is call what the market will bear.

You can drop them as a reseller if you want also.

You can **suggest** a list price.

[Sparks]

I've been in businesses before where there have been market prices set that I could not sell below. I never messed with it, but one reseller went below the price and the manufacturer cut them off. It is not illegal... companies do that to protect themselves. If you agree to terms as a reseller then that is part of the deal.

[Triple 6]

can you change your location to "I have no business knowledge" ?


thx

Just because I dont know the legality of a particular business situation, doesnt mean I know absolutely 'nothing' about 'business'. But I'll go ahead and change my location when you prove you know 'everything' about business law.

[Stacey_JoinRightNow]

i guess its not illegal... i agree its part of the biz & part of the deal

[Triple 6]

here is what price fixing is defined by. Seems like it applies to what I described, but who knows, i will have to call a lawyer either way. I just see myself as the 'manufacturer' of the product, not just some other vendor selling the same shit. I would think theres a difference.

WHAT IS PRICE FIXING?
What is price fixing - legal answers at FreeAdvice.com's business section

Most state statutes provide that fixing the price of a product or service in agreement with another individual or business is illegal. The general rule provides that a vendor may not in combination with another vendor agree to set a certain price thereby creating a fixed price within a certain market. A business acting on its own and not in concert with another may use legitimate efforts to obtain the best price they can, including their ability to raise prices to the detriment of the general public. Also, conformity of prices within a given product is not illegal unless such conformity was created by a combination of vendors agreeing on a set price. For example, where competitors agree to sell their goods or services at a specified price, minimum price or maximum price and they receive profits from such an agreement, they are in violation of price fixing. Additionally, setting a price to be charged only within a certain area in order to get rid of competition or to create a monopoly is generally illegal under most state laws. A majority of states have also enacted a "Below-Sales-Cost" law wherein businesses may not sell goods below cost if they do so with anti-competitive intent or effect.

This information is only a brief summary of the extensive price fixing laws and regulations.

[jimmyf]

here is what price fixing is defined by. Seems like it applies to what I described, but who knows, i will have to call a lawyer either way. I just see myself as the 'manufacturer' of the product, not just some other vendor selling the same shit. I would think theres a difference.

price fixing does not apply in your case. The Gov. don't give a shit about you .

[wargames]

uhm, in what aspect are thinking about it as illegal?

[bly]

no. i dont think so