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    lipssosweet's Avatar
    lipssosweet Posts: 7, Reputation: 1
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    #1

    Mar 9, 2011, 10:22 AM
    What type of document gives a person permission to sell my product?
    Recently started a business that I had inc. I have product made with my company name on it. A lady wants to purchase the product wholesale and sell in her shop. She needs a letter or contract giving her permission to sell the product what type of document should I provide to her?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Mar 9, 2011, 11:29 AM
    Quote Originally Posted by lipssosweet View Post
    ... She needs a letter or contract giving her permission to sell the product ...
    No she doesn't. But to make her happy write a letter on your company letterhead saying
    "to whom it may concern:
    _______, d/b/a ___________, at the business address of ____________ has our permission to re-sell those [describe product] manufactured by us and sold to [her name]."
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    smoothy Posts: 25,492, Reputation: 2853
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    #3

    Mar 9, 2011, 11:35 AM

    She might be thinking about having exclusive distribution rights in a particular area. Depending on the product and if that is typical for that type of item.
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    lipssosweet Posts: 7, Reputation: 1
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    #4

    Mar 9, 2011, 11:40 AM
    Comment on smoothy's post
    She has not mentioned that and I do not want to limit my sales to just her in that area. Do you think I need to mention that in the letter?
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    smoothy Posts: 25,492, Reputation: 2853
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    #5

    Mar 9, 2011, 11:51 AM

    I'd toss in that it does NOT imply exclusive distribution rights. Just in case they get miffed if a shop next door decides to sell it to at some point.


    I mean can you imagine the mess if every store that sells Kellogs Frosted Flakes or Heinz Ketchup needed written proof they were allowed to sell them?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #6

    Mar 9, 2011, 12:06 PM
    Quote Originally Posted by smoothy View Post
    ...
    I mean can you imagine the mess if every store that sells Kellogs Frosted Flakes or Heinz Ketchup needed written proof they were allowed to sell them?
    And think of it from an economic point if view. Kellogs is in the business of making corn flakes to be sold by retailers. If they tried to stop a certain store from selling them, that wouldn't be good business.
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    smoothy Posts: 25,492, Reputation: 2853
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    #7

    Mar 9, 2011, 12:08 PM
    Quote Originally Posted by AK lawyer View Post
    And think of it from an economic point if view. Kellogs is in the business of making corn flakes to be sold by retailers. If they tried to stop a certain store from selling them, that wouldn't be good business.
    Exactly... the paperwork would bankrupt them... and if they did that they would sell far fewer.


    Just in case the person in question may have meant to imply that but didn't ask the correct way or it was misunderstood. I can't think of why someone would ask that otherwise. THey have to know the rule of thumb is otherwise to the OP if they are in the retail business.

    Or intending to imply a distribution license for some reason?
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