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From: Brent Regan <brent@regandesigns.com>
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Subject: Re: D2 Update part deux
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Douglas Brunner writes:
<<<

In May, I purchased the Dual Sport Chelton from Direct 2 as a "show 
special". <snip>
The way I see the issue is as follows: 
 
1) Although I initially entered into a contract/agreement with Direct 2, 
this agreement/contract was transferred to the panel builder when my 
initial $1,000 deposit was transferred and the remainder of the cost of 
the system was paid to the panel builder.
 
2) Therefore my panel builder has a problem with one of ITS SUPPLIERS 
(just like if the panel builder had ordered and paid for an altimeter or 
a radio that it didn't receive), I don't have a direct relationship with 
Direct 2, my panel builder does.
 
<>3) I would hope that my panel builder will be able to resolve their 
problem with Direct 2 through Chelton. I don't know what 
legal responsibility Chelton has to clean up Direct 2's mess, but would 
hope they will "step up to the plate".  I also hope that my panel 
builder will "step up to the plate" (and I have no reason to believe 
they won't) if they have to.
  <><snip> 
I am afraid that one of the casualties of this may be my FreeFlight 
GPS.  This was a show special from Direct 2 and I am not sure what 
obligation my panel builder has or will feel to supplying me with this.
 >>>>

Doug, as I have said, I am not a lawyer and your position is a function 
of your contractual relationships and the laws that cover them. These 
laws may vary from state to state.  Common sense (not to be confused 
with law) would be that you gave money to someone and that someone 
agreed to give you something in return. Have they? If you have a 
disagreement with the guy at the other end of the contract then you need 
to work it out or get a lawyer.

Lets try a thought experiment. Suppose I want a new GM Truck. I live in 
a small town and there is only one GM dealer in the area. They only sell 
GM trucks and GM cars and bumper hitches and those cool running boards. 
 From my perspective, they are the exclusive distributor of the GM Truck 
I want. I go to them and order a custom truck, pay for the truck up 
front, did I mention it was a custom truck, and then go shopping for 
custom rims. A week later I go back to the dealer only to find that the 
dealership is out of business and their lot looks like the opening scene 
from the Omega Man.

I call the General in Motor City and ask as politely as I can "Where the 
F*&%K is my truck?". The second time I call I ask to speak with their 
customer service department  and I explain my situation. Their records 
show that the dealer in question hasn't placed any orders in many weeks 
and they have not received any payments from that dealer either.  I 
would like to hear a lawyer explain to me (and cite some case law) why 
GM owes me a truck? If someone can make that argument then I would also 
like to hear why we then need bankruptcy courts.

I agree with your assessment outlined in #2 above. If you have and 
agreement with someone I would assume you are entitled to performance.

I do not agree with your statement #3 above. Your builder and CFS were 
left holding different ends of the same bag. You are suggesting that the 
guy who lost an arm get a new arm from the guy who lost a leg. Besides, 
if your contract is with the panel builder, do you care a whit what they 
have to do to get you your hardware?

The question regarding a  "free"  Free Flight GPS is interesting. Was it 
on the list of things to be supplied in exchange for your money?  In 
that case it may be owed.  Alternately, was it a promotional  item to be 
provided from D2. A free FreeFlight directly from Direct To? If so, good 
luck. Again, it all comes down to the specifics of your agreement with 
your builder.

A little deductive reasoning (not to be confused with fact) would lead 
one to the conclusion that those who dealt with dealers other than D2 
will receive their hardware. This is because the dealer has the choice 
of refunding the customer's $$s or purchasing hardware from CFS, Xbow, 
FreeFlight, TruTrack and others. Since purchasing the hardware at 
wholesale involves less $$s than refunding at retail $$s, they will 
purchase the hardware and give it to the customer that paid them, which 
is curiously similar to their existing business model.

If you dealt with D2 directly.... Tell you what, when you see me in the 
petitioner's gallery of the Bankruptcy court come over and say "Hi". We 
can go get a beer to cry in after the proceedings.

All of this is shear speculation on my part.  If anyone has a rational 
argument or idea that would help the situation or bring germane facts to 
light then please speak up. I am no expert but I have been around long 
enough to know that the best one can hope for is performance up to, but 
not more than, the legal requirements. I can't imagine any of the 
manufacturers "stepping up" and assuming D2's liabilities unless 
required by law. I know it sounds cold but as Morpheus said "Welcome to 
the real world, Neo."

I would also point out that the interested parties have a "Reality 
Proof" of what happens when a company "steps up" and takes on optional 
liability.  D2 failed, in part, because they were handing out material 
(ADAHRS) that they weren't getting paid for and had no legal 
responsibility to provide.

Of course, that is all just my opinion and I have been wrong before.

Regards
Brent Regan


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<font face="Arial">Douglas Brunner writes:<br>
&lt;&lt;&lt;<br>
<b><br>
</b></font>
<div><b><big><font face="Arial"><font size="2"><big>In May, I purchased
the Dual
Sport Chelton from Direct 2 as a "show special". </big></font></font></big></b><big><font
 face="Arial"><font size="2"><big>&lt;snip&gt;</big></font></font></big></div>
<div><b><big><font face="Arial"><font size="2"><big>The way I see the
issue is as
follows:&nbsp; </big></font></font></big></b></div>
<div><b><big>&nbsp;</big></b></div>
<div><b><big><font face="Arial"><font size="2"><big>1) Although I
initially entered
into a contract/agreement with Direct 2, this agreement/contract was
transferred to the panel builder when my initial $1,000 deposit was
transferred and the remainder of the cost of the system was paid to the
panel builder.</big></font></font></big></b></div>
<div><b><big>&nbsp;</big></b></div>
<div><b><big><font face="Arial"><font size="2"><big>2) Therefore my
panel builder
has a problem with one of <strong>ITS SUPPLIERS</strong> (just like if
the panel builder had ordered and paid for an altimeter or a radio that
it didn't receive), I don't have a direct relationship with Direct 2,
my&nbsp;panel builder does.</big></font></font></big></b></div>
<div><b><big>&nbsp;</big></b></div>
<><b><big><font face="Arial"><font size="2"><big>3) I would hope that
my panel
builder will be able to resolve their problem with Direct 2 through
Chelton. I don't know what legal&nbsp;responsibility Chelton has to clean up
Direct 2's mess, but would hope they will "step up to the plate".&nbsp; I
also hope that my panel builder will "step up to the plate" (and I have
no reason to believe they won't) if they have to.<br>
</big></font></font></big></b><big>&nbsp;</big></>
<><big><font face="Arial"><font size="2"><big>&lt;snip&gt;</big></font></font></big><b><big>&nbsp;</big></b></>
<div><b><big><font face="Arial"><font size="2"><big>I am afraid that
one of the
casualties of this may be my FreeFlight GPS.&nbsp; This was a show special
from Direct 2 and I am not sure what obligation my panel builder has or
will feel to supplying me with this.</big></font></font></big></b></div>
<div><big>&nbsp;</big>&gt;&gt;&gt;&gt;<br>
</div>
<br>
Doug, as I have said, I am not a lawyer and your position is a function
of your contractual relationships and the laws that cover them. These
laws may vary from state to state.&nbsp; Common sense (not to be confused
with law) would be that you gave money to someone and that someone
agreed to give you something in return. Have they? If you have a
disagreement with the guy at the other end of the contract then you
need to work it out or get a lawyer.<br>
<br>
Lets try a thought experiment. Suppose I want a new GM Truck. I live in
a small town and there is only one GM dealer in the area. They only
sell GM trucks and GM cars and bumper hitches and those cool running
boards. From my perspective, they are the exclusive distributor of the
GM Truck I want. I go to them and order a custom truck, pay for the
truck up front, did I mention it was a custom truck, and then go
shopping for custom rims. A week later I go back to the dealer only to
find that the dealership is out of business and their lot looks like
the opening scene from the Omega Man.<br>
<br>
I call the General in Motor City and ask as politely as I can "Where
the F*&amp;%K is my truck?". The second time I call I ask to speak with
their customer service department&nbsp; and I explain my situation. Their
records show that the dealer in question hasn't placed any orders in
many weeks and they have not received any payments from that dealer
either.&nbsp; I would like to hear a lawyer explain to me (and cite some
case law) why GM owes me a truck? If someone can make that argument
then I would also like to hear why we then need bankruptcy courts.<br>
<br>
I agree with your assessment outlined in #2 above. If you have and
agreement with someone I would assume you are entitled to performance.<br>
<br>
I do not agree with your statement #3 above. Your builder and CFS were
left holding different ends of the same bag. You are suggesting that
the guy who lost an arm get a new arm from the guy who lost a leg.
Besides, if your contract is with the panel builder, do you care a whit
what they have to do to get you your hardware?<br>
<br>
The question regarding a&nbsp; "free"&nbsp; Free Flight GPS is interesting. Was
it on the list of things to be supplied in exchange for your money?&nbsp; In
that case it may be owed.&nbsp; Alternately, was it a promotional&nbsp; item to
be provided from D2. A free FreeFlight directly from Direct To? If so,
good luck. Again, it all comes down to the specifics of your agreement
with your builder.<br>
<br>
A little deductive reasoning (not to be confused with fact) would lead
one to the conclusion that those who dealt with dealers other than D2
will receive their hardware. This is because the dealer has the choice
of refunding the customer's $$s or purchasing hardware from CFS, Xbow,
FreeFlight, TruTrack and others. Since purchasing the hardware at
wholesale involves less $$s than refunding at retail $$s, they will
purchase the hardware and give it to the customer that paid them, which
is curiously similar to their existing business model.<br>
<br>
If you dealt with D2 directly.... Tell you what, when you see me in the
petitioner's gallery of the Bankruptcy court come over and say "Hi". We
can go get a beer to cry in after the proceedings.<br>
<br>
All of this is shear speculation on my part.&nbsp; If anyone has a rational
argument or idea that would help the situation or bring germane facts
to light then please speak up. I am no expert but I have been around
long enough to know that the best one can hope for is performance up
to, but not more than, the legal requirements. I can't imagine any of
the manufacturers "stepping up" and assuming D2's liabilities unless
required by law. I know it sounds cold but as Morpheus said "Welcome to
the real world, Neo." <br>
<br>
I would also point out that the interested parties have a "Reality
Proof" of what happens when a company "steps up" and takes on optional
liability.&nbsp; D2 failed, in part, because they were handing out material
(ADAHRS) that they weren't getting paid for and had no legal
responsibility to provide.<br>
<br>
Of course, that is all just my opinion and I have been wrong before.<br>
<br>
Regards<br>
Brent Regan<br>
<br>
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