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Wholesalers and the Law


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The fact that a business is involved in the wholesale business does not give it exemptions to the law. In fact in some instances the law might be enforced more stringently if it is recognized that it involves wholesalers. People sometimes complain of the bureaucratic nightmare of unenforceable laws that the wholesalers have to deal with on a daily basis. However it must be pointed out that these laws are created for a particular reason and they are usually beneficial to the wholesalers. Moreover the punitive measures that arise as a result of an attempt to ignore the laws may prove to be too costly for the wholesalers.

Taxation is a very important area of contention between the wholesalers and the authorities. There is an old joke to the effect that everyone believes that they are paying too much tax and that holds true for the wholesalers as well. The tax obligations arise even when the trader is working exclusively on the internet. If there are no records to verify the tax liability then the government can decide to make a liberal estimate. Normally that estimate is far higher than the tax liability that the wholesalers would be facing.

Product selection can also lead to issues of legality with the wholesalers. The creation of national bureaus of standards means that there is no room for traders to sell substandard products without the threat of prosecution. In fact some countries have made this a serious public health issue that can attract a lot of negative publicity for the culprits. The counterfeit products are also another area of concern that can land the wholesalers in a lot of hot water. The best deals arise out of an understanding of the legal issues within the jurisdiction rather than trying to cut corners on the product selection.

There is no guarantee that the wholesalers will not be caught out by some loophole or the other but they need to concentrate on the benefits of dealing with the requirements of the jurisdictional arrangements in order to run successful ventures. Those who are working in an international context have to be wary of the changes in the legislative climate once they cross borders. The alternative is to risk some pretty tough sanctions for failing to follow the stipulations of the law. Most wholesalers would choose to have a quiet life rather than risk the wrath of the government.

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