"No Reseller" clause for Cybertruck

[ThomasD]

Tesla will deliver Trucks to influencers, wealthy stock holders and celebrities on Nov 30. They will most likely show the Truck being Bullet Proof. Show it doing some off roading. Show that it is quicker than any other Truck and Sports Car. Tesla may even show the Truck with some accessories. But will they announce specs like max towing, payload capacity and price? How upset will people be if specs are not released on Nov 30? Will Tesla start mass builds and deliveries before or after the New Year?

 

[T3SLAROD]

It is Un-American because muh rights. I have the right to buy whatever I want under whatever terms I agree to, not those of the seller. And if anyone denies me that right, well hell-fire will rain down and Krackens will be released./s

Yes it is legal. It is legal because it is a contract that the two parties agree to.

Let's follow your logic:

1. It is MY truck therefore I can sell it when I want to and ask however much I want.

If you agree with that statement, then....

2. Currently it is Tesla's truck and therefore it can sell it if it wants to under its terms. If Tesla doesn't want you to resell the truck, then Tesla can put restrictions on the sale and give you the CHOICE of buying the truck or not.

There is no "right" to buy anything in the US; the buyer and seller come to an agreement (contract) to exchange goods for compensation. If no agreement can be reached, the sale doesn't happen.

You cannot force Tesla to sell to you on your terms any more than someone else can force you to sell to them, on their terms. If I demand you sell your truck to me for $100 after a year, you can/should turn me down. I can't force you to sell it to me at my terms, we have to reach an agreement.

I can force you to sell me the truck under threat of death or dismemberment but that isn't legal. Tesla isn't threatening your life or limb, forcing you to follow through with the reservation now that you have decided that you are not purchasing the truck for personal use (apparently something you agreed to when you made the reservation.) That would be illegal. If you don't agree to the terms, you walk away from the sale with your life, limbs, and buy something else.

It seems that you don't like the terms of the agreement Tesla has offered. Therefore, you have choices:

1. follow the terms (and get your truck and figure out another way of profiting from it)

2. wait until production exceeds demand and you can buy the truck without this term you dislike so much

This post is 100% correct. Which is the reason you never own your Tesla even out of warranty. Tesla controls your car and decides what you can and can’t do with it.

 

[Black306]

Contract can be modified and rescinded with the agreement of both parties. If you sign the final agreement you agree to the new terms. If you refuse to sign it and argue it is a breach of contract, as mentioned, you are owed a refund according to the original contract and that's it.

Contract law allows for defaulting on contracts (and the terms are typically specified in the contract itself, as it is here). People are not bound to follow them with no way to default. That seems to be a misconception by some people.

That's a tangent. In my hypothetical, there wasn't an agreement for both parties going into the purchase agreement. Implication is the buyer was expecting a certain price and the seller is raising the price beyond agreed limits. Buyer wants to continue with the sale at the agreed pre purchase terms.

The only 'back out' clause for Tesla is cancelling the agreement if they believe the seller is acting on bad faith or they discontinue a product, feature, or option. There is no clause that states Tesla can back out of the pre purchase agreement at any time, for any reason.

Let me ask you a question instead. What compensation were you expecting beyond that? Are you trying to say that Tesla must deliver the car at the given price no matter what (with no alternative remedy allowed)? Because that is clearly not what the prepurchase agreement says, nor have I heard of any similar terms in any preorder for products.

I never stated, nor expected, any compensation. Again, my focus has been on the legality/enforcement of terms in a pre purchase agreement and how they apply to a purchase agreement. There is a stated clause in the pre purchase contract on reselling and Tesla may change that clause in a purchase agreement. If there are penalties against Tesla for changing those terms and breaching a pre purchase contract, it would be up to an arbitration/lawsuit to what the compensation would end up being. That's assuming someone has the time/money/desire to really go through litigation.

I still believe if Tesla changes the reseller's clause, they would be in breach of contract and be potentially legally liable. Practically speaking though, it would likely end in a cancelled pre purchase agreement, buyer would get their $100 back, and Tesla wouldn't face any penalties for breach of contract. Wouldn't be surprised if there was a class-action lawsuit though.

 

[father_of_6]

If you signed the preorder agreement, then you agreed that the limit of damages was a refund of your $100 deposit.

Why is there still any argument?

 

[zoomer0056]

Tesla will deliver Trucks to influencers, wealthy stock holders and celebrities on Nov 30. They will most likely show the Truck being Bullet Proof. Show it doing some off roading. Show that it is quicker than any other Truck and Sports Car. Tesla may even show the Truck with some accessories. But will they announce specs like max towing, payload capacity and price? How upset will people be if specs are not released on Nov 30? Will Tesla start mass builds and deliveries before or after the New Year?

Ok, these are your bets. In two weeks we'll see how good your guesses were.

 

[zoomer0056]

I have the right to buy whatever I want under whatever terms I agree to, not those of the seller.

That doesn't make sense. You're signing and agreeing to terms that the buyer seller wrote. If you buy, then you agree to seller terms.

 

[Black306]

If you signed the preorder agreement, then you agreed that the limit of damages was a refund of your $100 deposit.

Why is there still any argument?

Wasn't going to touch on that, cause IMO that's a different topic. My focus point is that if Tesla changes the reseller terms on a pre purchase agreement, that's breach of contract, period; Tesla is in the legal wrong.

Awarded damages is another subject. Breach of contract does fall under incidental damages, but I'm not sure if the 'Limitation of Liability' clause limit is legal when such a willful and significant change to the terms are made by the seller. That's why I said I wouldn't be surprised if there was a class-action lawsuit.

 

[FLRifleman]

Wasn't going to touch on that, cause IMO that's a different topic. My focus point is that if Tesla changes the reseller terms on a pre purchase agreement, that's breach of contract, period; Tesla is in the legal wrong.

Awarded damages is another subject. Breach of contract does fall under incidental damages, but I'm not sure if the 'Limitation of Liability' clause limit is legal when such a willful and significant change to the terms are made by the seller. That's why I said I wouldn't be surprised if there was a class-action lawsuit.

One can use all kinds of twisted logic to try and make that case. But at the end of the day the language of the pre-purchase agreement, with all the legal disclaimers for that coveted spot in line is clear. The actual order agreement, when that time comes, can and will have terms within it that aren't in the pre-purchase agreement. If you don't like those terms, then you don't have to sign that contract and you get your $100 back. Just because you don't like those terms doesn't change this fact. Continuing to argue this isn't the case, also won't change those facts.

 

[Black306]

One can use all kinds of twisted logic to try and make that case. But at the end of the day the language of the pre-purchase agreement, with all the legal disclaimers for that coveted spot in line is clear. The actual order agreement, when that time comes, can and will have terms within it that aren't in the pre-purchase agreement. If you don't like those terms, then you don't have to sign that contract and you get your $100 back. Just because you don't like those terms doesn't change this fact. Continuing to argue this isn't the case, also won't change those facts.

I still believe if Tesla changes the reseller's clause, they would be in breach of contract and be potentially legally liable. Practically speaking though, it would likely end in a cancelled pre purchase agreement, buyer would get their $100 back, and Tesla wouldn't face any penalties for breach of contract. Wouldn't be surprised if there was a class-action lawsuit though.

So glad we agree.

 

[stopcrazypp]

That's a tangent. In my hypothetical, there wasn't an agreement for both parties going into the purchase agreement. Implication is the buyer was expecting a certain price and the seller is raising the price beyond agreed limits. Buyer wants to continue with the sale at the agreed pre purchase terms.

The only 'back out' clause for Tesla is cancelling the agreement if they believe the seller is acting on bad faith or they discontinue a product, feature, or option. There is no clause that states Tesla can back out of the pre purchase agreement at any time, for any reason.

So you are talking about a contract where Tesla agreed to a fixed price with no wiggle room, and then they also say they can only back out for those reasons? Such a contract doesn't exist and for good reason. I don't think any seller would be dumb enough to draft a contract like that.

I never stated, nor expected, any compensation. Again, my focus has been on the legality/enforcement of terms in a pre purchase agreement and how they apply to a purchase agreement. There is a stated clause in the pre purchase contract on reselling and Tesla may change that clause in a purchase agreement. If there are penalties against Tesla for changing those terms and breaching a pre purchase contract, it would be up to an arbitration/lawsuit to what the compensation would end up being. That's assuming someone has the time/money/desire to really go through litigation.

I still believe if Tesla changes the reseller's clause, they would be in breach of contract and be potentially legally liable.

Legally liable for what? That is the core question. If it's legally liable for the pre-purchase deposit, everyone here agrees and the point is moot, so not sure what you are arguing about. If it's legally liable for something beyond that, I don't think anyone agrees with you.

Practically speaking though, it would likely end in a cancelled pre purchase agreement, buyer would get their $100 back, and Tesla wouldn't face any penalties for breach of contract.

That's exactly what people are saying it would end up as.

Wouldn't be surprised if there was a class-action lawsuit though.

You can have a class-action suit for literally anything, so I don't think that's saying much. Plenty of threads of people saying a class-action suit should be made for whatever random issue Tesla is having with their cars.

 

[father_of_6]

The obvious angle for all you angry scalpers (@Black306 ) is to just sell it on day 366. It'll likely still be constrained at that time and you'll be able to have driven it for a fully year and still make a profit... OR keep it covered in the garage so it's still like new.

 

[Black306]

So you are talking about a contract where Tesla agreed to a fixed price with no wiggle room, and then they also say they can only back out for those reasons? Such a contract doesn't exist and for good reason. I don't think any seller would be dumb enough to draft a contract like that.

Legally liable for what? That is the core question. If it's legally liable for the pre-purchase deposit, everyone here agrees and the point is moot, so not sure what you are arguing about. If it's legally liable for something beyond that, I don't think anyone agrees with you.

That's exactly what people are saying it would end up as.

You can have a class-action suit for literally anything, so I don't think that's saying much. Plenty of threads of people saying a class-action suit should be made for whatever random issue Tesla is having with their cars.

Again, missing the point. But hey, you win the internet today. Here is a digital cookie.

 

[father_of_6]

I feel like my ranting also deserves a cookie (really I just like cookies)... but I'll understand if there's not enough for everyone.

 

[zoomer0056]

I feel like my ranting also deserves a cookie (really I just like cookies)... but I'll understand if there's not enough for everyone.

Here's a for you. I only have two, so you can have one. No need to sign a NDA and if you decide, you can give it away to one of your many kids ... no time restrictions.

 

[father_of_6]

Here's a for you. I only have two, so you can have one. No need to sign a NDA and if you decide, you can give it away to one of your many kids ... no time restrictions.

Thanks for the cookie preorder! When will I get to know the cookie dimensions, weight, the number of chips, and its energy storage (calorie count)?

Also, when the actual cookie is available, will there be additional restrictions on sharing or cookie transfer within the first year?

Finally, I clicked "no" to the GDPR cookie acceptance popup. Will I still get the cookie and if not, will a sales advisor please adjust my answer so that I can get just this *ONE* cookie?

Finally 2, home cookie warming... is that a thing?

Last but not really last, for anyone else wanting one of these limited supply cookies, don't even *think* about buying them from anyone but me for only a small, generous, 50% markup.

 

[SidetrackedSue]

That doesn't make sense. You're signing and agreeing to terms that the buyer seller wrote. If you buy, then you agree to seller terms.

The /s at the end of the full quote is internet speak for "the preceding was satire."

 

[keeney]

Contracts are void if they are illegal. Certain types of contracts that restrain trade are illegal in the U.S. Of course, it will cost you a lawsuit to find out. Which is also illegal...

 

[scottf200]

Someone on another forum said they ordered a 2nd one recently and said this:

... and the Pre-Order Agreement states that:

No Resellers; Discontinuation; Cancellation. Tesla and its affiliates sell cars directly to end-consumers, and we may unilaterally cancel any order that we believe has been made with a view toward resale of the Vehicle or that has otherwise been made in bad faith. We may also cancel your pre-order and refund your Pre-Order Payment if we discontinue a product, feature or option after the time you place your pre-order or if we determine that you are acting in bad faith.

 

[uscbucsfan]

Someone on another forum said they ordered a 2nd one recently and said this:

... and the Pre-Order Agreement states that:

That was in my original agreement.

 

[Hoosier-Daddy]

What are examples of "otherwise been made in bad faith". I mean examples that don't need canceling such as "never really wanted one anyway" or "I have a 2-digit credit score"