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#218402 - 11/18/02 08:56 PM Re: Question re: Non-Transferable Warranties !
Arthur R. Jacobs Offline
Member

Registered: 12/01/01
Posts: 130
Loc: Alma, Michigan, 48801 USA
One of the reasons the company warranty is valid only to the original purchaser, is because of "transshipping." A shady dealer can order 10 times the product he can sell and ship the excess to a non-dealor a long distance from him. He thinks that dealor will not effect his sales, because he is far from his territory. The unauthorized outlet, can then sell the product below the price that a small family business can purchase it for from the company, because he bought them at slightly over dealor cost, and with no service, requires little profit from each sale. The shady dealor in turn can make a better profit, because his volume increase from the manufacturer, allows him a better price. The more you buy (within reason) the cheaper you can get them. This practice is widely abused in the U.S., and the only loser of course will be the customer, because he will have no factory warranty. This unethical method of merchandising is difficult to stop, because, when the authorized dealor purchases the product, it belongs to him, and he can give it away or do anything else he wants to with it. The Supreme Court confirmed this, in a case brought by Argus Camera Company, years ago.
So, when it comes to warranties, you had better be sure exactly who is giving the warrantee, exactly how long it is in force, and how long has the source been in business.
Remember-----buyer beware----------ARJ
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#218403 - 11/18/02 09:08 PM Re: Question re: Non-Transferable Warranties !
DonM Offline
Senior Member

Registered: 06/25/99
Posts: 16735
Loc: Benton, LA, USA
. . .Then the companies (Yamaha for example) should offer ALL dealers the same price, regardless of the number ordered. That way the small local dealers could compete fairly with the internet "giants".
DonM
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