Is it legal to buy paper goods in large quantity from a wholesaler not manufacturer, then repackage it in small quantity put my company label on it and resell it?

Asked on September 15, 2012 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is legal so long as:

1) In buying the goods, you do not agree to terms of sale which preclude re-packaging and re-selling--if you do, then you are contractually obligated to those terms.

2) The goods you are re-packing are not identifiable as orginating from either the wholesaler or manufacturer (e.g. do not have logos or watermarks on them), since if they are identified as coming from another source and you then put your own label on it, you will be implying a relationship between you and the wholesaler or manufacturer which does not exist. Doing so may be a violation of trademark and/or an act of unfair competition (see, e.g. the Lanham Act), depending on exact circumstances.

3) You do not misrepresent the source of the material to consumers or customers (e.g. you do not state that they are only available from you, or were manufactured for  you), since to do so would be consummer fraud.


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