SleepNow has conducted its own test buys. It’s determined that three of the unauthorized sellers are selling actual Miracle Sleep Patches, sometimes with intact packaging and sometimes with torn or ripped packaging. These three sellers appear to have purchased the products in bulk from an authorized seller, using a discount for bulk purchases, which allows them to undercut SleepNow’s own prices while still making money on each sale. The products sold by SleepNowForLess are fake, and testing reveals they contain mercury, potentially in high enough levels to cause significant health issues. Many purchasers from all four sellers have submitted warranty claims to SleepNow. Although the warranty says SleepNow will not issue refunds if the purchase was from an unauthorized seller, Alice feels strongly that these customers were duped. Wanting to do the right thing, she has honored every. warranty claim.               You are an associate at Lotza Billibal Ours & Thensum. A partner has asked you what steps SleepNow can take to prevent each of the four unauthorized sellers from reselling on Amazon. She also wants to know whether it is possible to identify AliceEurekaTruth and “sue him or her into oblivion” for the “obvious lies” that person is telling. Finally, she asks what defenses each party could raise, where these suits can be filed, and the chances of success. How do you advise her?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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SleepNow has conducted its own test buys. It’s determined that three of the unauthorized sellers are selling actual Miracle Sleep Patches, sometimes with intact packaging and sometimes with torn or ripped packaging. These three sellers appear to have purchased the products in bulk from an authorized seller, using a discount for bulk purchases, which allows them to undercut SleepNow’s own prices while still making money on each sale. The products sold by SleepNowForLess are fake, and testing reveals they contain mercury, potentially in high enough levels to cause significant health issues. Many purchasers from all four sellers have submitted warranty claims to SleepNow. Although the warranty says SleepNow will not issue refunds if the purchase was from an unauthorized seller, Alice feels strongly that these customers were duped. Wanting to do the right thing, she has honored every. warranty claim.

 

            You are an associate at Lotza Billibal Ours & Thensum. A partner has asked you what steps SleepNow can take to prevent each of the four unauthorized sellers from reselling on Amazon. She also wants to know whether it is possible to identify AliceEurekaTruth and “sue him or her into oblivion” for the “obvious lies” that person is telling. Finally, she asks what defenses each party could raise, where these suits can be filed, and the chances of success. How do you advise her?

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