Contracts Keyed to Blum
Kaloti Enterprises, Inc. v. Kellogg Sales Co.
Kaloti Enterprises, Inc. (Kaloti) contracted with Kellogg Sales Co. (Kellogg) to sell Kellogg’s products. Kaloti entered into agreements to sell through Geraci& Associates, Inc. (Geraci). Geraci would solicit orders from Kaloti, Kellogg ships orders to Kaloti, and Kaloti sells the products to grocery stores. After acquiring Keebler Food Companies, Kellogg began sellings its products directly to grocery stores. Kellogg and Geraci entered into an agreement prohibiting Geraci from disclosing Kellogg’s new strategy. When Kaloti later tried to sell Kellogg’s products to stores, the stores refused because they had already purchased the products directly from Kellogg. Kaloti sued Kellogg and Geraci for fraudulent misrepresentation and the trial court granted Kellog and Geraci’s motion to dismiss. Kaloti appealed.
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