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Dealers...Lawyers...Need input on reloads...

n/an/a Member Posts: 168,427 ✭
edited July 2007 in General Discussion
I have a local guy that used to be a commercial reloader. He has supposedly loadeded for multiple law enforcement agencies as well. I'm wondering if I would be opening myself up to liability by selling his reloads in my shop.?.? Is there a way that I can sell this ammo without being liable if something goes wrong? I'd appreciate any input that I can get. Thank you!
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    jimdeerejimdeere Member, Moderator Posts: 25,665 ******
    edited November -1
    What can go wrong? If your answer is not "absolutely nothing", then you can be liable.
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    drsckdrsck Member Posts: 992 ✭
    edited November -1
    I used to work for a couple of guys who started in the reloading business. Unfortunately, that's not what they told their insurance agency, their landlord, etc. They simply said, "we're in the gun business." They weren't really trying to hid anything; they just didn't know any better. Well, as you might be able to imagine, when everybody found out the exact nature of their business, they all bailed. They are no longer in the reload manufacturing business; they now have a small gun shop and WILL NOT SELL RELOADS. Now you know better, so whatever you do, DON'T DO IT!!!!!!!!!!!! Best of luck -- Steve
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    rediceredice Member Posts: 1,550 ✭✭✭✭✭
    edited November -1
    Have good liability insurance, at the very least 1 million possibly more look into firearms related cases and look at what the settlements were for, get insurance for more than that.

    I am sorta in the same boat I just filed for my ffl and checked for reloading to duno if I will ever do it or not but figured 30 bucks wont hurt if I do go into it which I would like to it will only be if I can get enough insurance to cover my *.

    Not that I wont be extremely carefull, but what would it take for some * to pull a bullet double load a case put your bullet back in blow up his gun lose his hand then sue you saying that it was your reload that did it?
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    Old-ColtsOld-Colts Member Posts: 22,700 ✭✭✭
    edited November -1
    I think you need real legal advice on this one, not just a bunch of opinions. However, it seems to me by selling his products in your store you are defacto endorsing the product, which in turn could make you liable. I'm not a lawyer, I've never played one on TV, nor did I stay in a Holiday Inn Express last night, so take my opinion for what it's worth, next to nothing, but I wouldn't sell his products.

    If you can't feel the music; it's only pink noise!

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    aramisviaramisvi Member Posts: 4,589
    edited November -1
    ECC,

    I would proceed with caution...start by sampling his loads. If you put them in your shop to sell, without knowing his loads, you are vouching for him without stating it. test fire some of his handiwork, and have him show you the documantation for each load you test. If they check out ok, make him sign a contract to where you can test fire at random, any time any load, just to to assure quality and consistency with his loading practices. It may be his name on the bag, but it's your business to keep.
    If you like his loads, start small of course and let some of your most trusted customers try it (or take some out to try with you there to watch) have them give you a range report...they'll know what they like and give you honest feed back...if things go good, sign him under a contract to produce the same with a low amount to start and gradually increase your orders from there.
    PLus, you can always slip a "waiver of liability" into each bag, box, or case he brings in for sale. But I do wanna throw this out to you to ponder as well...I know that there are checks and quality assurances in place at the big manufacturers, but there always stands a possibility that a bad batch could get through and sold to customers before it is caught. You take that chance with every order. The biggest difference between them and the guy wanting to have you carry his loads is that they have been doing it for decades and have a well placed system...but they wouldn't have it if someone didn't give them the chance to market their product in their stores at some point. Right?

    just my two cents...hope I helped.
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    41 nut41 nut Member Posts: 3,016
    edited November -1
    Before even considering selling his reloads you want to find out if he has a manufacturing license and insure that he is charging the federal excise tax on the ammo. Otherwise you can be considered an acessory to manufaturing without a license and you could possibly be held responsible for the tax on every box you sell both of which are Federal offenses (this came from my attorney a number of years ago). Any and all manufacturers of ammo must collect the same percentage of Federal tax that the big companies have to pay. Additionally if someone buys a box of his reloads and something goes wrong you are most likely the one that is going to be sued. I've operated a small gunshop for 30 years and after a lengthy conversation with my attorney about the liabilities back when I opened I have never sold reloads whether from an individual or one of the reload companies.
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    joker5656joker5656 Member Posts: 5,598 ✭✭✭
    edited November -1
    don't know about a business but i know the flea markets here always have a few that are there almost every weekend to sale reloads and other gun related
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    spurgemasturspurgemastur Member Posts: 5,655 ✭✭
    edited November -1
    Sounds like more potential trouble than it's worth, to me.

    Then again, somebody has to support the small entrepreneur if he's ever going to build the next great corporation.

    Others above already have better advice than I can offer. Except maybe: talk very explicitly with your insurance agent!
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    MIKE WISKEYMIKE WISKEY Member, Moderator Posts: 9,972 ******
    edited November -1
    I WOULD NOT SELL HIS PRODUCT UNTIL
    A. YOU GET A COPY OF HIS MGF. LICENSE
    B. A COPY OF HIS INSURANCE POLICY THAT LISTS YOU AS A 'ADDITIONAL INSURED'
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    JgreenJgreen Member Posts: 2,579 ✭✭✭✭✭
    edited November -1
    Yes, in most states you are liable, no matter what you sell.
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    Sav99Sav99 Member Posts: 16,037 ✭✭✭
    edited November -1
    My local gun shop/shooting range sells them. Dirty as hell so I wont shoot them, but they do sell reloads at the shop.
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    BigGun74BigGun74 Member Posts: 189 ✭✭✭
    edited November -1
    You should sit down with a lawyer, but first talk to your insurance agent and ask if you would be covered if you got sued. If your insurance agent says no, you should say no.
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    mateomasfeomateomasfeo Member Posts: 27,143
    edited November -1
    Consult a lawyer in your state who deals in business litigation or insurance defense.

    I would want an iron clad indemnification agreement from the manufacturer. I would also require the manufacturer to carry TONS of insurance.

    Sounds like the juice ain't worth the squeeze unless you are going to be selling boatloads of it...
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    mateomasfeomateomasfeo Member Posts: 27,143
    edited November -1
    quote:Originally posted by eboydell
    Very professionally stated. Damn, sometimes I am so proud to just know you! Matt, what about the female attorney?[;)][?]



    Asked and answered counselor![:D]

    In case you missed the post, don't know her, and neither does my wife!
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    mateomasfeomateomasfeo Member Posts: 27,143
    edited November -1
    quote:Originally posted by eboydell
    THANK YOU,Matt! I did miss the post. Any new gun in your near future?[?]


    Sorry ECC, I mean, MR. MODERATOR, don't mean to hijack the thread, but in answer, I like the FN PS90. Gotta close my house deal and buy everything else under the sun for the next few months, so I'll be happy if I can afford ammo for the guns I have!!!
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