Satelilte limited, a marketing firm, has decided to introduce a new business met

Question

Satelilte limited, a marketing firm, has decided to introduce a new business method for marketing CDs. it will send unsolicited CDs to consumers containing the "contract" stating that the CDs cost $27 each and that a payment should be remitted to Satelite's PO Box address if the consumer wishes to keep the CD, otherwise, the CD must be returned. The contract also states in small print, that should a consumers fail to return the CD;s or remit payment, within 30 days, the company will commence legal proceedings to recover the $ 27.

Advise Satellite as to the right to recover the price of each CD from the consumer who fail to return the product.

Explanation / Answer

It’s a case of unsolicited prodcust supplied and it is an offense to demand payment for unsolicited services or products which the customers did not agree to purchase or receive. Satellite marketing cannot issue an invoice for unsolicited CDs supplied. Recipients of unsolicited goods are not required to return the goods, rather Satellite Marketing has to collect the CDs and if it fails to collect the CDs within a stipulated time, then the recipients can keep them. Also recipients are not liable for any damage to the CDs, delivered by Satellite Marketing without a purchase order from the recipients.

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