Louis Vuitton is a manufacturer of luggage, purses, wallets, and briefcases, and
ID: 431783 • Letter: L
Question
Louis Vuitton is a manufacturer of luggage, purses, wallets, and briefcases, and is internationally known for its classic LV design on its products. Vuitton has authorized two U.S. importers to handle its products with the caveat that the products are to be sold only by finer department stores and Vuitton-authorized dealers and franchises. One dealer has been selling the Vuitton products at substantial discounts to a wholesaler in the Los Angeles garment district. Discuss Vuitton's rights in this situation.
Explanation / Answer
Vuitton is experiencing the gray market- the authorization for sales of good is being exceededwith resultant flooded market and reduced price. However under current law there is a little hope for Vitton controlling the imports by the LA dealer. Vuitton may have to take action of terminating the wholesaler.
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