Submitted by The Editor on Tue, 09/09/2008 - 13:14
I recently purchased the Rainbow vacuum from Karey Distributors INC. I also made an appointment with them to have them visit my cousin to see if she would like to buy one and/or work with the company. My cousin did not buy one however she did go to work for the company. Three weeks later she was fired because she would not just sell the product to home owners, she also went to renters. Is it really legal to sell a product just to certain people and no one else? (Posted by Pastrygirl on the Chat Room.)
The following response was posted by attorney John Libertine: The reason cited by a Rainbow sales representative for their being restricted to demonstrating the product to homeowners vs. renters was that renters as a group were less likely to qualify for financing on the unit. (The unit "lists" for approximately $3100, typically it is offered to homeowners at the demonstration for $2100, with other discounts and incentives available to close the sale if that number doesn't appeal to the prospective buyer.) Since representatives are compensated for making presentations, the company is simply pointing their resources in the direction of the most likely candidates for sales. While it might be considered discrimination if the company refused to sell to renters as a class, the sales rep indicated that exceptions to the demonstration policy would be made for pre-screened (i.e.: financially qualified) renters. Renters could also visit a sales office and purchase a unit directly.
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