Is this a criminal offence
Querist :
Anonymous
(Querist) 22 September 2011
This query is : Resolved
sir, i'm presenting my query through following example case:-
in a dictonary (or any other products), on its PREFACE( i.e. in 2nd page), the manufacturer SPECIFICALLY mention that:-
NORMAL RATE/UNIT-Rs1195.
Incase of bulk purchases (eg:- 40 units & above) Rs 896.25/unit.
BUT on two pages later (i.e. in 5th page),
he JUST GIVEN- "RS 597.5.". No other details mentioned.
He has nothing mentioned about the PRICE, either at the front cover or back cover.
the retailer got it for RS 474/unit (frm the manufactuer),since he bought 40 units.
my doubt is, at WHAT PRICE the retailer ( who bought it DIRECTLY from the manufacturer, in bulk)has THE RIGHT TO SELL ( as per the law)?
[i.e. LEGALLY, at what price, he can sell it to the ULTIMATE CUSTOMER?
Whether at RS 597.50 OR at ANY PRICE to a MAXIMUM of RS 1195(i.e. at RS 597.5 or at RS 896.25 OR at RS 1195 OR at 'in between RS 474 - RS 1196') AS PER HIS CHOICE ( and NOT as per the choice of manufacturer)?]
if ,whether the manufacturer could have the right to INSIST him to sell at 597.5 or at any other rates, which the manufacturer may wish that the retailer should have to sell it to the 'ultimate customer'?.
if the RETAILER sell to a customer ( who buys a single copy or unit) at RS 896.25 OR at a price which range between RS 474 - RS 1196(i.e. upto rs 1195), is that a CRIMINAL OFFENCE or CRIME?
IS the retailer is legally punishable FOR THAT?
if, other retailers sells as per manufacturer's advice at rs 597.5 or any other prices(as manufacturer prefers),what will be the legal consequence or impact on our above mention retailer( who sold per unit at RS 896.25)?
R.Ramachandran
(Expert) 22 September 2011
You specifically tell as to what is the exact product.
This information is very much necessary, since there are some products which can be sold only with M.R.P. (maximum retail price) indicated. Wherever the products are not liable to M.R.P., the retailer can sell it at any price that he wants.
A manufacturer cannot direct the retailer to sell at a particular price, or not below a particular price. This will attract the provisions of the Competition Act.
Guest
(Expert) 24 September 2011
Agree with Shri Ramachandran.
