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American law has many provisions, among them the First Sale Doctrine, where once money has changed hands a seller cannot restrict your use of a product. Our Su
by mike_d 3y ago
American law has many provisions, among them the First Sale Doctrine, where once money has changed hands a seller cannot restrict your use of a product.
Our Supreme Court famously applied this to inkjet cartridges, saying a printer maker can't take punitive action against you for refilling them:
https://www.oyez.org/cases/2016/15-1189 https://www.oyez.org/cases/2016/15-1189
- pests 3y agoWhat does Ferrari do to be able to enforce their rules?
- LeoPanthera 3y agoThe simple answer is that it's never been tested - no-one has tried to resell a "restricted" Ferrari.
- mike_d 3y agoFerrari won't interfere with the sale of a vehicle, because they have no legal grounds to do so. However you do give up your ability to be waitlisted for upcoming models, which effectively prevents you from buying them new ever again. Ferrari terminated the franchise agreement for the Wynn Las Vegas Ferrari dealership because Steve Wynn sold his LaFerrari before the 2 year window was up.
- piperswe 3y agoFerrari can blacklist you from receiving allocations for new cars, but AFAIK they can't limit your access to the used market.
- KennyBlanken 3y agoSure they can. Someone who sells you a used car ends up blacklisted as well; people who own high end / collectable Ferraris wouldn't dare risk being blacklisted. They famously blacklisted Top Gear for revealing that Ferrari was 'cheating' in their evaluations by arriving with an army of technicians and tuning the car to the Top Gear test track before allowing TG to review it, and delivering the car with tires much stickier than they came from the factory and so on. Every other journalist was gladly hiding all this bullshit because they didn't want to lose access to press cars. Top Gear hosts said "if you happen to have one of the ____ models and would let us drive it, let us know" during an episode and someone took them up on it. Ferrari blacklisted the owner for doing so.
- blondin 3y agoit is unclear how first sale doctrine applies here.
- mike_d 3y agoI just provided that as an example most people are aware of. It could very well come into play if Tesla attempts to use IP laws to prevent resale. Any such provision from Tesla would generally fail under UCC, which generally only allows conditions on resale when there is an explicit agreement to act as a distributor or wholesaler.
- gpm 3y agoCan you point to what part of the UCC you think generally prohibits/voids this type of contractual restriction (or case law saying it does if it does in a way that isn't obvious from a plain reading)? I can't say I'm very familiar with the ins and outs, but I don't see anything that obviously does so glancing through it. There is some stuff about "sale or return" that I think is the distributors/wholesalers vs normal sale distinction that you're making, but nothing there seems relevant to this sort of clause.
- mike_d 3y agoThe idea that you can't tell someone else what they can do with a thing once it has been sold traces back to common law. Here is a Supreme Court example from 1911: "The right of alienation is one of the essential incidents of a right of general property in movables, and restraints upon alienation have been generally regarded as obnoxious to public policy [and have] been generally held void." -Miles Medical. v. Park I can't point you to a specific code that prohibits this because it depends entirely on what grounds Tesla would claim the right to impose such restrictions. For example if they claim that parts of the Cybertruck are patented, the exhaustion doctrine would apply. From Wikipedia: "once an authorized sale of a patented article occurs, the patent holder's exclusive rights to control the use and sale of that article are said to be 'exhausted,' and the purchaser is free to use or resell that article without further restraint from patent law. However, under the repair and reconstruction doctrine, the patent owner retains the right to exclude purchasers of the articles from making the patented invention anew"