I want to charge and take customer's money upfront, and then go buy items in large volume.

Asked about 1 year ago - Huntington Beach, CA

After successfully achieving my goals with discounts and making my purchase, then I ship the products out. I have clearly stated this to all my customers that shipping could take 7 days or even 7 months etc! If they agree, they buy! If not then don't buy. If they've purchased and felt like waiting is too long, I will refund 100%. Is this against the law? Am I allow to take money upfront to build cash volume to acquire products and then ship it out to my customers? Everything I am doing is stated in the terms and agreement and the customer has agree to it before paying for the item.

Attorney answers (3)

  1. Christine C McCall

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Answered . The holes in this business model are staggering and likely fatal. Talk to an attorney and an accountant.

    No legal advice here. READ THIS BEFORE you contact me! My responses to questions on Avvo are never intended... more
  2. Robert J Adams Jr.

    Pro

    Contributor Level 20

    3

    Lawyers agree

    1

    Answered . Yes you can. But you really should hire an attorney to be sure your contracts are air tight. Saving a few bucks by not hiring a lawyer could in the long run cost you much, much more.

  3. Michael Charles Doland

    Contributor Level 20

    Answered . I must agree with Ms. McCall about the business model. While potentially legal, I cannot imagine anyone accepting to wait for months with their money in your pocket until you are able to deliver.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more

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