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Old 04-14-2017, 08:19 PM
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powdrhound
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Default business ethics question..

So here is a question business ethics question for you guys. I’ve been buying and selling parts on various forums for many years and have never run into a situation like this before either with sellers or buyers.

I earlier this week I found a gearbox advertised on Ebay advertised by one of the members here. The Ebay listed the seller’s phone number number to call with any questions. I called the seller in the afternoon and after a lengthy discussion we came to an agreement on price, payment, shipping information, etc. It was during this conversation that we both realized we were on Rennlist here. This gave me a warm and fuzzy because I alway to prefer doing business with fellow gear heads here. Since I have access to Porsche Motorsport parts which I bring in directly from Europe, the seller also asked me if I could give him a quote on a laundry list of parts which he’s looking to purchase. I agreed to do as this was my way of extending thanks to a fellow Rennlister for what I perceived to be a very smooth transaction regarding the purchase of the gearbox.

The seller asked me to email him my information so he could send me an official invoice from his company with the various “sold as is” disclaimers. I emailed him everything as requested as soon as we hung up the phone that afternoon.

Early the following morning I get an email from him (which he sent after midnight) with the payment wiring instructions and the list of parts he wanted a quote on. I immediately replied to his email stating that I am transferring funds from my broker account to my business account and will be remitting payment as soon as the transfer is done, likely by the end of the day, next day at the latest. I also told him I contacted my rep in Europe and would have his parts quote ready in a few days.

On my way to the bank that afternoon around 3pm to wire the funds, I get an email from the seller stating that he is sorry but that he sold the transmission to a buyer who just paid his original “buy it now” price on ebay. He said he never took the the listing down as he does not consider anything sold until he receives payment. He said he was sorry but does not feel that selling the transmission to another buyer was unethical because he has not received any money from me yet. He told me that the invoice he emailed me which was clearly labeled “invoice” was merely a quote and not an agreement to sell. WTF? A copy of the "invoice" is below with the personal items x'd out.

Now, my question is, am I crazy in thinking the this is totally an unethical way to conduct business? How do you guys see it?

Whenever I sell something to someone and we agree on the terms, I consider the item sold to that person unless payment is not made within a reasonable amount of time and the buyer does not respond to my query. Depending on circumstances, I may ask for a deposit to hold the item up front. Nevertheless, AFTER I’ve entered into a verbal sale agreement and submitted an invoice to a buyer, I have personally NEVER EVER sold or would sell an item to another individual to make an extra few bucks. I’ve also had items listed on ebay that I have sold outside of ebay and forgot to take the listing down. Subsequently someone purchased the item on ebay. I immediately refunded their money and contacted them stating that the item is no longer available. This to me is the proper way to handle this and should have been done in this case. Is it not? Just curious to see how you guys conduct business or would expect others to act in a similar situation.

What blows me away is that this seller is very active in the sale of race parts. I just have not come across any guys in this small community that conduct themselves in what I consider an underhanded fashion. Happy Easter everyone…


INVOICE

SELLER: xxxx xxxxx
xxxxx xxxxxx xxxxxx
xxxxxx,xx xxxxx
Cell xxx-xxx-xxxx

BUYER:
xxxx xxxxxxxxx
xxx xxxx xxxxx xxxx
xxxxx,xx xxxxx
Cell xxx-xxx-xxxx

Send to:
xxxx xxxxxxx


DATE 4/12/2017
INVOICE:

DESCRIPTION OF GOODS:
QTY- 1 Low Miles xxx xxxxxx Gear Box...............$x.xxxxx.xx USD plus cup shift cable set
Insured Shipping...............................................Buyer will arrange
Total.................................................................$x ,xxx USD


TERMS OF DELIVERY: Seller shall ship goods within 10 days unless otherwise agreed to with the buyer.

TERMS OF PAYMENT: Check, Bank Wire Transfer (details listed below) or Paypal or money transfer prior to shipment – Paypal using the “FAMILY or FRIENDS PAYMENT” option or buyer agrees to pay the paypal related fees. Paypal payments can be sent to xxxx@xxxxxxxxxxxxx.com

https://www.paypal.com/

DISCLAIMER OF EXPRESS & IMPLIED WARRANTIES: The goods sold under this Memorandum of sale are purchased by the Buyer on an “AS IS” basis and Seller makes NO REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING WITHOUT LIMITATION, THE DESIGN OR CONDITION OF THE GOODS, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, OR THE QUALITY OF THE MATERIALS OR WORKMANSHIP. If any model or sample was shown to the Buyer, that model or sample was used merely to illustrate the general type and quality of the goods and not to represent that the goods would necessarily conform to the model or sample.

APPLICABLE LAW: This memorandum of Sale shall be governed by the Uniform Commercial Code as adopted in the State of California as effective and in force on the date hereof.

Bank Wire Details:
xxxx xxxxxx
xxxx xxxxxxxx
xxx xxxxxxx

Swift code xxxxxxxxx

Account Number xxxxxxxxx
Routing Number xxxxxxxxx

Last edited by powdrhound; 09-07-2017 at 09:42 PM.
Old 04-14-2017, 08:41 PM
  #2  
F1CrazyDriver
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john, sorry to hear that. That's a hard question as i have seen both sides.
What i have learned is. First pay, gets the item. I have been burned many times w/ "i'll send payment" and the payment never comes, but i get excuses and i missed other serious buyers. I have seen that happened on rennlist w/ friends (whom text me X member screwed me over)....it also depends on the reputation of an individual. If i know the individual / done business (not a flaker)-i have shipped the items before i received payment... done that w/ a few rennlist members. been burned and i have not .
Old 04-14-2017, 08:45 PM
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Larry Cable
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Originally Posted by powdrhound
So here is a question business ethics question for you guys. I’ve been buying and selling parts on various forums for many years and have never run into a situation like this before either with sellers or buyers.

I earlier this week I found a gearbox advertised on Ebay advertised by one of the members here. The Ebay listed the seller’s phone number number to call with any questions. I called the seller in the afternoon and after a lengthy discussion we came to an agreement on price, payment, shipping information, etc. It was during this conversation that we both realized we were on Rennlist here. This gave me a warm and fuzzy because I alway to prefer doing business with fellow gear heads here. Since I have access to Porsche Motorsport parts which I bring in directly from Europe, the seller also asked me if I could give him a quote on a laundry list of parts which he’s looking to purchase. I agreed to do so and told him I’d sell him the items at cost. This was my way of extending thanks to a fellow Rennlister for what I perceived to be a very smooth transaction regarding the purchase of the gearbox.

The seller asked me to email him my information so he could send me an official invoice from his company with the various “sold as is” disclaimers. I emailed him everything as requested as soon as we hung up the phone that afternoon.

Early the following morning I get an email from him (which he sent after midnight) with the payment wiring instructions and the list of parts he wanted a quote on. I immediately replied to his email stating that I am transferring funds from my broker account to my business account and will be remitting payment as soon as the transfer is done, likely by the end of the day, next day at the latest. I also told him I contacted my rep in Europe and would have his parts quote ready in a few days.

On my way to the bank that afternoon around 3pm to wire the funds, I get an email from the seller stating that he is sorry but that he sold the transmission to a buyer who just paid his original “buy it now” price on ebay. He said he never took the the listing down as he does not consider anything sold until he receives payment. He said he was sorry but does not feel that selling the transmission to another buyer was unethical because he has not received any money from me yet. He told me that the invoice he emailed me which was clearly labeled “invoice” was merely a quote and not an agreement to sell. WTF? A copy of the "invoice" is below with the personal items x'd out.

Now, my question is, am I crazy in thinking the this is totally an unethical way to conduct business? How do you guys see it?

Whenever I sell something to someone and we agree on the terms, I consider the item sold to that person unless payment is not made within a reasonable amount of time and the buyer does not respond to my query. Depending on circumstances, I may ask for a deposit to hold the item up front. Nevertheless, AFTER I’ve entered into a verbal sale agreement and submitted an invoice to a buyer, I have personally NEVER EVER sold or would sell an item to another individual to make an extra few bucks. I’ve also had items listed on ebay that I have sold outside of ebay and forgot to take the listing down. Subsequently someone purchased the item on ebay. I immediately refunded their money and contacted them stating that the item is no longer available. This to me is the proper way to handle this and should have been done in this case. Is it not? Just curious to see how you guys conduct business or would expect others to act in a similar situation.

What blows me away is that this seller is very active in the sale of race parts. I just have not come across any guys in this small community that conduct themselves in what I consider an underhanded fashion. Happy Easter everyone…


INVOICE

SELLER: xxxx xxxxx
xxxxx xxxxxx xxxxxx
xxxxxx,xx xxxxx
Cell xxx-xxx-xxxx

BUYER:
xxxx xxxxxxxxx
xxx xxxx xxxxx xxxx
xxxxx,xx xxxxx
Cell xxx-xxx-xxxx

Send to:
xxxx xxxxxxx


DATE 4/12/2017
INVOICE:

DESCRIPTION OF GOODS:
QTY- 1 Low Miles xxx xxxxxx Gear Box $x.xxxxx.xx USD plus cup shift cable set
Insured Shipping Buyer will arrange
Total $x,xxx USD


TERMS OF DELIVERY: Seller shall ship goods within 10 days unless otherwise agreed to with the buyer.

TERMS OF PAYMENT: Check, Bank Wire Transfer (details listed below) or Paypal or money transfer prior to shipment – Paypal using the “FAMILY or FRIENDS PAYMENT” option or buyer agrees to pay the paypal related fees. Paypal payments can be sent to xxxx@xxxxxxxxxxxxx.com

https://www.paypal.com/

DISCLAIMER OF EXPRESS & IMPLIED WARRANTIES: The goods sold under this Memorandum of sale are purchased by the Buyer on an “AS IS” basis and Seller makes NO REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING WITHOUT LIMITATION, THE DESIGN OR CONDITION OF THE GOODS, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, OR THE QUALITY OF THE MATERIALS OR WORKMANSHIP. If any model or sample was shown to the Buyer, that model or sample was used merely to illustrate the general type and quality of the goods and not to represent that the goods would necessarily conform to the model or sample.

APPLICABLE LAW: This memorandum of Sale shall be governed by the Uniform Commercial Code as adopted in the State of California as effective and in force on the date hereof.

Bank Wire Details:
xxxx xxxxxx
xxxx xxxxxxxx
xxx xxxxxxx

Swift code xxxxxxxxx

Account Number xxxxxxxxx
Routing Number xxxxxxxxx
That sucks, esp since you offered to obtain those parts for him at cost - i.e you were doing him a "solid" ...

in this case I'd say its equally fair to tell him to go and f*** himself for the motorsport parts...
Old 04-14-2017, 09:02 PM
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powdrhound
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Originally Posted by F1CrazyDriver
john, sorry to hear that. That's a hard question as i have seen both sides.
What i have learned is. First pay, gets the item. I have been burned many times w/ "i'll send payment" and the payment never comes, but i get excuses and i missed other serious buyers. I have seen that happened on rennlist w/ friends (whom text me X member screwed me over)....it also depends on the reputation of an individual. If i know the individual / done business (not a flaker)-i have shipped the items before i received payment... done that w/ a few rennlist members. been burned and i have not .
I get the first pay Enrique. Since we did not do the deal through Ebay to save on the fees. I could not send payment right away as he was going to email me the bank wire instructions to me which he did around midnight later that day. By the time I could get to the bank the next day, he sold it. I asked him before getting off the phone if he needed anything else from me and he said no that it will all be in his invoice. If he said, hey, paypal me a $1000 to hold it than I would have done that no problem. He just seemed like a straight shooter so I didn't expect he'd pull the rug out. We spent a half hour on the phone trying to iron out the details. Lesson learned.
Old 04-14-2017, 09:04 PM
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powdrhound
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Originally Posted by Larry Cable
That sucks, esp since you offered to obtain those parts for him at cost - i.e you were doing him a "solid" ...

in this case I'd say its equally fair to tell him to go and f*** himself for the motorsport parts...
It's tempting but I'm trying to be the better person here... It was a pretty large order, probably over $20K...
Old 04-15-2017, 02:21 AM
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Spyerx
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Eff him. Really.
Not ethical. Word is word. Sorry. In this case all he needed to do was reach out to you. He didn't.
Don't do the MS Parts thing either. Why do him a favor? he didn't do one of you.
Old 04-15-2017, 03:25 AM
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powdrhound
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Thanks guys. No worries. Just a gearbox, not a biggie. It's just that rarely people shock the hell out of me when I think I've got 'em pegged. This was one of those cases. I'd have a hard time looking at myself in the mirror everyday if I treated people like that. Good to know there are others out there that think along the same lines I do..
Old 04-15-2017, 02:24 PM
  #8  
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Originally Posted by Spyerx
Eff him. Really.
Not ethical. Word is word. Sorry. In this case all he needed to do was reach out to you. He didn't.
Don't do the MS Parts thing either. Why do him a favor? he didn't do one of you.
^^^ This

He stiffs you on "just a gearbox" and now is supposed to get a deal on 20k in Motor Sport parts?? Oh really! There are MANY very respectable R'listers here that buy and sell to each other. As Mooty has said "know the seller" then buy. Unfortunately there can be a few "speed bumps" and you unfortunately found one.
Old 04-15-2017, 02:56 PM
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VID997
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I definitely would not offer him Motorsports parts at cost after what he did. In fact I would not even order the parts for him...he needs to find his own MS source.
Old 04-15-2017, 02:57 PM
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+1 on a small paypal deposit, in order to get first dibs. Whenever I PM a seller on an item FS, I give him my PP info if he prefers to send an invoice or he replies with a PP address to send funds.
If funds are sent, then other details can be addressed; i.e., removing the ebay listing.

was there a time difference issue ; i.e. different coasts ?

a sticky situation with ebay and having to remove a listing... due to a BIN on ebay, as soon as a "Buyer" hits that button, it's pretty much a done deal on ebay, as soon as the buyer pays up.

Seller shouldn't have held out for more $$ on the deal by keeping the EB listing still active, that's not fair to you.

As far as the MS parts you're ordering for him...... you may need an incentive to go thru with that deal.
Old 04-15-2017, 03:22 PM
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I agree, it is bad business. The wheel turns and he will learn a few lessons the hard way...

Originally Posted by Spyerx
Eff him. Really.
Not ethical. Word is word. Sorry. In this case all he needed to do was reach out to you. He didn't.
Don't do the MS Parts thing either. Why do him a favor? he didn't do one of you.

Last edited by amerifrikaner; 04-15-2017 at 10:45 PM.
Old 04-15-2017, 04:29 PM
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mrgreenjeans
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business ethics ?

he has none. Unfortunately much of the 'corporate' world operates like this in today's world.
Outing him would do us all a favor..... a total flake.
Old 04-15-2017, 04:34 PM
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furthermore, money or 'profiteering' should never come before personal interaction. Or any socialization between humans. When it does, we are all a little less human because of it.

The slope has just been made more slippery and the gradient much more steep
Old 04-15-2017, 06:26 PM
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Originally Posted by VID997
I definitely would not offer him Motorsports parts at cost after what he did. In fact I would not even order the parts for him...he needs to find his own MS source.
The guy has an MS account here but getting it from MS in Germany like I do comes out cheaper. The dealer discount from PMNA here in the US negligible.
Old 04-15-2017, 06:37 PM
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Cheers guys. The responses pretty much mirror my take on it. That's good to know. I would say that in +90% of dealings with guys in this industry have been positive if not exceptional, but every once in a while someone burns you. It just hasn't happened to me on a big ticket item. I just wasn't expecting it from this guy because we talked at length, had mutual acquaintances in the industry, and it was simply a done deal in my book. I had no issues doing a deposit via paypal if he requested it but I made it clear I was doing a wire later that day as soon as my transfer hit. If someone tells me they are sending payment later that day or the next morning especially when we are dealing with an expensive item, I'm simply not going to screw them. That's not how I do business. Nuff said....


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