The Wholesale Forums

[walshy69]

Hi my names adam and I was about to start broking for a company but have heard many bad stories about people who have been legit brokers and have been caught in the middle because something has gone wrong or their supplier has not delivered. Things like this can lead to you being sued by a lot of your customers. So i was Interested and asked my dad who is a lawyer and just thought i should fill people in that dont already know.

I heard the story about Judi on the forum and how she got caught up in a really bad situation and just thought I should provide everyone with some help and warnings before thinking of brokering.

Firstly if you start to broker for a company that is registered and your supplier does not deliver the products to you or your customers depending on the situation. You can only then sue the company for what its worth!! Thats right you can not sue the person personally unless you have a signed contract or are dealing with him personally! So if the company delcared bankruptcy you could pretty much sue them for nothing and it could cost you alot.

Another instance is if a scammer starts a business that is worth $2. You do not know the true value of the company. He does not deliver the goods and you choose to go after him, you file a lawsuit and sue him but you come to realise the company is worth $2 (whatever amount company is worth) and you spend more money in the court trying to sue him than you actually realise what the company is worth. Again because the man has a registred business you can not sue him personally even if he was a millionare! Unless ovcourse a contract was agreed upon and clearly states the terms.

So anyone who is currently thinking of brokering here are a few ideas that maybe useful to you;
- Get your supplier to sign a contract with you stating that you can sue him personally if something goes wrong.
- Make him her send him a copy of their passport so you know they are the person who they say they are (nothing worse than trying to take legal action against someone who has given you a false address or name)

Anyway I hope that all helps! anyone pick me up on any mistakes if I have made any

[avideo]

That information is very useful and appreciated.

[electronicsguy]

Very educational ! Thanks for sharing it.

[walshy69]

thanks guys

[Anon12345]

Great info Walshy.


Way to step up.

[TheCompany]

Can anyone help me out with a legal document I am compiling?

[ForSenaLLC]

The liability protection that a corporation, LLC, etc. offers is not absolutely concrete. The so-called 'corporate veil' can be pierced if the person (or people) who is running the company does not conduct proper business. In the case of large corporations, the officers (executives) can become personally liable if not following procedure. In the case of small sole owner businesses, I suppose the same could be applied.

I would think that a deliberate scam would fall under improper business procedure. Thus, just because someone has a registered business doesn't mean they can go ahead and scam people and hide behind the company name.

Now, if you were to ask what constitutes "proper business procedure", I would not be the person to be answering that question. I'm saying all this based on what I've read in the book "Inc. & Grow Rich"...great book for those doing business in the US.

Just my 2 cents-

[walshy69]

Thanks again guys!

[carillion]

http://store.inetelectronix.com/wholesale.html

is this site legit