Mailing List lml@lancaironline.net Message #39271
From: Brent Regan <brent@regandesigns.com>
Sender: <marv@lancaironline.net>
Subject: Re: D2 Update part deux
Date: Fri, 05 Jan 2007 01:14:04 -0500
To: <lml@lancaironline.net>
Douglas Brunner writes:
<<<

In May, I purchased the Dual Sport Chelton from Direct 2 as a "show special". <snip>
The way I see the issue is as follows: 
 
1) Although I initially entered into a contract/agreement with Direct 2, this agreement/contract was transferred to the panel builder when my initial $1,000 deposit was transferred and the remainder of the cost of the system was paid to the panel builder.
 
2) Therefore my panel builder has a problem with one of ITS SUPPLIERS (just like if the panel builder had ordered and paid for an altimeter or a radio that it didn't receive), I don't have a direct relationship with Direct 2, my panel builder does.
 
<>3) I would hope that my panel builder will be able to resolve their problem with Direct 2 through Chelton. I don't know what legal responsibility Chelton has to clean up Direct 2's mess, but would hope they will "step up to the plate".  I also hope that my panel builder will "step up to the plate" (and I have no reason to believe they won't) if they have to.
  <><snip> 
I am afraid that one of the casualties of this may be my FreeFlight GPS.  This was a show special from Direct 2 and I am not sure what obligation my panel builder has or will feel to supplying me with this.
 >>>>

Doug, as I have said, I am not a lawyer and your position is a function of your contractual relationships and the laws that cover them. These laws may vary from state to state.  Common sense (not to be confused with law) would be that you gave money to someone and that someone agreed to give you something in return. Have they? If you have a disagreement with the guy at the other end of the contract then you need to work it out or get a lawyer.

Lets try a thought experiment. Suppose I want a new GM Truck. I live in a small town and there is only one GM dealer in the area. They only sell GM trucks and GM cars and bumper hitches and those cool running boards. From my perspective, they are the exclusive distributor of the GM Truck I want. I go to them and order a custom truck, pay for the truck up front, did I mention it was a custom truck, and then go shopping for custom rims. A week later I go back to the dealer only to find that the dealership is out of business and their lot looks like the opening scene from the Omega Man.

I call the General in Motor City and ask as politely as I can "Where the F*&%K is my truck?". The second time I call I ask to speak with their customer service department  and I explain my situation. Their records show that the dealer in question hasn't placed any orders in many weeks and they have not received any payments from that dealer either.  I would like to hear a lawyer explain to me (and cite some case law) why GM owes me a truck? If someone can make that argument then I would also like to hear why we then need bankruptcy courts.

I agree with your assessment outlined in #2 above. If you have and agreement with someone I would assume you are entitled to performance.

I do not agree with your statement #3 above. Your builder and CFS were left holding different ends of the same bag. You are suggesting that the guy who lost an arm get a new arm from the guy who lost a leg. Besides, if your contract is with the panel builder, do you care a whit what they have to do to get you your hardware?

The question regarding a  "free"  Free Flight GPS is interesting. Was it on the list of things to be supplied in exchange for your money?  In that case it may be owed.  Alternately, was it a promotional  item to be provided from D2. A free FreeFlight directly from Direct To? If so, good luck. Again, it all comes down to the specifics of your agreement with your builder.

A little deductive reasoning (not to be confused with fact) would lead one to the conclusion that those who dealt with dealers other than D2 will receive their hardware. This is because the dealer has the choice of refunding the customer's $$s or purchasing hardware from CFS, Xbow, FreeFlight, TruTrack and others. Since purchasing the hardware at wholesale involves less $$s than refunding at retail $$s, they will purchase the hardware and give it to the customer that paid them, which is curiously similar to their existing business model.

If you dealt with D2 directly.... Tell you what, when you see me in the petitioner's gallery of the Bankruptcy court come over and say "Hi". We can go get a beer to cry in after the proceedings.

All of this is shear speculation on my part.  If anyone has a rational argument or idea that would help the situation or bring germane facts to light then please speak up. I am no expert but I have been around long enough to know that the best one can hope for is performance up to, but not more than, the legal requirements. I can't imagine any of the manufacturers "stepping up" and assuming D2's liabilities unless required by law. I know it sounds cold but as Morpheus said "Welcome to the real world, Neo."

I would also point out that the interested parties have a "Reality Proof" of what happens when a company "steps up" and takes on optional liability.  D2 failed, in part, because they were handing out material (ADAHRS) that they weren't getting paid for and had no legal responsibility to provide.

Of course, that is all just my opinion and I have been wrong before.

Regards
Brent Regan

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