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 Replies: 18 / Views: 3,442 |
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Valued Member
Canada
414 Posts |
A client of ours was telling us for weeks he was saving the money to purchase a set of banknotes but after some investigating I found him trying to sell the banknotes under our nose on Kijiji and Facebook without getting our permission first.
In good faith we were holding the notes for him, first he said he was waiting to get paid, then he told us his father was going to purchase them as a birthday gift. We had passed up a few opportunities to sell them until Sunday when we finally gave up and sold them to another collector at the local show.
So I guess my question is, is it illegal for him to 'try' to sell something he does not own or have permission to?
I just figured this out today so I am yet to message him, the adds are still active and for all we know he could be arranging the sale as I type this. Little does he know the banknotes are already gone.
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Pillar of the Community
Canada
5239 Posts |
It is certainly unethical. I don't think that it is illegal, as selling goods you don't own is called "short selling" on the stock and commodity markets. It might also be similar in principle to "pre-ordering" goods which we see with the Mint.
There are some obvious differences between your situation and short-selling; I am not suggesting that they are the same. Your customer was really making a commitment to buy, which should not have anything to do with whether he could resell it or not. It brings his honesty into question as there was quite a bit of doubt as to his intention to follow through, and failure to follow through would have been an opportunity cost for you.
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Pillar of the Community
United States
819 Posts |
i hope he sells them and then finds out he has nothing to sell. and then he gets to tell the buyer the bad news. this is a good way to give yourself a bad reputation.
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Pillar of the Community
United States
2403 Posts |
How does he plan on delivering them? If he doesn't have the money to buy them himself from OP then he is relying on whoever buys them from him to pay for them while he pockets the profit. I don't know about anyone else, but I would not hand cash to some body I found on FB without them having the merchandise in hand....just my humble opinion.
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Bedrock of the Community
United States
94367 Posts |
Certainly unethical. Quite a story and thanks for relating it.
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Pillar of the Community
Canada
5239 Posts |
To add more to my original comment, I have a good relationship with my LCS and it would be insulting to pull a stunt like that. They would be quite justified in withdrawing my "most favoured customer" status.
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Pillar of the Community
United States
7390 Posts |
Not necessarily mont. He may have the money he just doesn't want to commit to buying them until he has a buyer for an easy profit. Defenatly not a smart business move especially in such a high turnover industry like this. What a moron
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Pillar of the Community
Canada
5239 Posts |
@Cascade, if that is the case, and possibly it is, he expects the dealer to forego opportunity while he hunts for a quick profit.
I would not want such a person as a customer.
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Pillar of the Community
United States
2403 Posts |
Quote:
I would not want such a person as a customer.  He sounds like a shady buyer and seller. I wouldn't do business with him at all. |
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Pillar of the Community
United States
2589 Posts |
This is actually what alot of the bullion pushers do, it helps them from taking losses when the price of metals drop. This way they hold minimum inventory and have minimum exposure to price changes, buying inventory only to fill orders in essence. However, it is dangerous, since if your supplier is delayed in delivering the goods to you, you too will be delayed in sending the products to the buyer.
The uniform commercial code (which governs most contract law in the USA) does not make it illegal to sell goods you do not own, it rather focuses on intent to deliver and performance. For example if I sell 4000 widgets to Bob's Wingdings with a delivery date on the contract for two weeks from the payment date, it is completely acceptable under the UCC to not have 4000 widgets in stock at the time of the payment date and to buy them from a wholesaler the day before, so long as the widgets are indeed delivered on time and conform to the specifications of the contract (and are merchantable, ect). Depending on how rare the banknote is in question though, that might not matter, because for certain unique items a buyer can demand specific performance and where the line drawn in regards to what constitutes such an item where one can demand such specific performance is kinda gray (or grey for you limies).
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Rest in Peace
United States
7075 Posts |
Next time, offer to hold the item for 24 hours for 10% down payment. 48 hours will cost 20%.
Clearly finding a customer was not as easy as he thought it would be.
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Rest in Peace
United States
17900 Posts |
Yes, a non-refundable deposit solves that grief.
He's a worm. Spend no more time on him.
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Pillar of the Community
Canada
3733 Posts |
what he was doing was wrong, but playing the devil's advocate.. how were you made several offers on the banknotes if you were holding them for said customer. they shouldn't have been on display still, they should have been in the back of the store. also why were the banknotes with you at the local show? considering you just said you figured it out this morning. but you sold them on Sunday?
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Valued Member
 Canada
414 Posts |
Great input everyone, you have all been able to put it into words what I couldn't. Quote:
If he doesn't have the money to buy them himself from OP then he is relying on whoever buys them from him to pay for them while he pockets the profit. Here's his quote from the kijiji add, firstly we did not disclose the notes were UNC, nor are we a TPG by any means. This will be his excuse when the he delays delivery to his customer. "extremely very rare pair or of specimen notes from the centennial year serial number is prefix I/P00000000. So was the very first off printed notes the notes are all in unc condition and are currently being professionally graded. So will have the proof of unc." Quote:
they shouldn't have been on display still, they should have been in the back of the store. also why were the banknotes with you at the local show? considering you just said you figured it out this morning. but you sold them on Sunday? Good question, our business is not brick and morter so 90% of our business is conducted at shows in southern Ontario and rarely online. This gentleman showed up early to the show Sunday morning, told us his dad would be there later in the day to buy the note as a birthday gift, and then we didn't see him again. It was the second time he pulled such a stunt so about an hour before the end of the show we decided to let it go. To be honest, we don't have much of a presence online so we thrive on dealer to dealer transactions and have plenty of regulars that buy from us and flip online themselves. This guy just stepped over the line a bit too far IMO. |
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Pillar of the Community
 Canada
5394 Posts |
Lovely.... what a beauty! Over the years any dealer has had at least one of this or similar ilk.
Highly unethical....... what a DB.
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Pillar of the Community
United States
2403 Posts |
Quote:
This will be his excuse when the he delays delivery to his customer. So did the notes he had advertised sell? Just curious. |
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Replies: 18 / Views: 3,442 |
Posted 12/06/2016 5:31 pm
