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QLD No Restraint to Resell Donuts Under Australian Consumer Law?

Discussion in 'Australian Consumer Law Forum' started by DonutMan, 16 September 2015.

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  1. DonutMan

    DonutMan Member

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    I operate a video store in a small country town about an hour and a half from the states capital city. I have been buying donuts from a donut retailer, and because they are so good, I am driving to the capital city, buying the goods at retail price, and reselling them in my store (To save customers a 1 1/2 hour drive).

    I am charging a price that will make me profit. I have asked this company if I can buy in bulk directly from them, but was told that they have a franchise agreement with a chain of convenience stores, and cannot sell to me.
    I have now been contacted by the parent company to say that I cannot resell their product. (The convenience store has no problem because it is just more sales for them).

    I was under the impression, that as long as I do not use their logo or their name, that they cannot stop me from selling due to restriction of trade. Is this correct?
     
  2. Amanda E

    Amanda E Well-Known Member

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    Yes, restraints of trade are on their face unenforceable (unless they're proved to be reasonable) - Have a read of Australian Competition Law
     
  3. DonutMan

    DonutMan Member

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    Thanks for your reply. Would this still be the case if I were to sell the product as the actual product brand name?
     

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