Contracts Keyed to Farnsworth
Bak-A-Lum Corp. of America v. Alcoa Building Products, Inc
In 1962 or 1963, the Plaintiff entered into an agreement with the Defendant to be the exclusive distributor in Northern New Jersey of aluminum siding and related products. In 1969, the Defendant decided to terminate its agreement with Plaintiff, but withheld from Plaintiff its intention to do so until 1970, all the while knowing the Plaintiff was expanding its warehouse facilities to maintain its exclusive distributorship. The trial court determined that the agreement was binding and could be terminated “only after a reasonable period of time and on reasonable notice.” Plaintiff appealed, questioning the adequacy of the trial court’s damage award. Defendant cross-appealed, questioning the trial court’s ruling that its conduct was actionable.
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