Uncle Erik
Uncle Exotic
- Joined
- Mar 18, 2006
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Quote:
Lawyer here. I'm not familiar with the EU competition law, but this smells legal under US law.
This has to do more with contracts than anything. First, it's perfectly legal for HeadRoom to cancel an order. They have to refund the money, of course, but generally, there's no other remedy available for a canceled order. In the United States, you can only force specific performance in tightly defined circumstances - otherwise, refunding money is almost always the prescribed remedy.
The second issue is HeadRoom's dealer agreement with Sennheiser. It sounds like Sennheiser has divided the world into regions and only allows dealers to sell in their assigned regions. This way, the dealers don't undercut each other on price. This, again, is generally quite legal in the United States.
But it sure sounds like Sennheiser is buttoning up its distributors to keep margins high. And the whole thing stinks of luxury brand marketing nonsense.
Originally Posted by struts /img/forum/go_quote.gif Any lawyers out there know if this is legal under EU competition law? (Sennheiser is a German company I believe and therefore subject to EU law even if Headroom isn't) |
Lawyer here. I'm not familiar with the EU competition law, but this smells legal under US law.
This has to do more with contracts than anything. First, it's perfectly legal for HeadRoom to cancel an order. They have to refund the money, of course, but generally, there's no other remedy available for a canceled order. In the United States, you can only force specific performance in tightly defined circumstances - otherwise, refunding money is almost always the prescribed remedy.
The second issue is HeadRoom's dealer agreement with Sennheiser. It sounds like Sennheiser has divided the world into regions and only allows dealers to sell in their assigned regions. This way, the dealers don't undercut each other on price. This, again, is generally quite legal in the United States.
But it sure sounds like Sennheiser is buttoning up its distributors to keep margins high. And the whole thing stinks of luxury brand marketing nonsense.