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Contracts Keyed to Dawson
Della Penna v. Toyota Motor Sales, U.S.A., Inc.
Citation:
11 Cal. 4th 376, Rptr. 2d 436, 902 P.2d 740.Facts
Toyota Motors distributed Lexus automobiles on the U.S. market. For marketing purposes, the manufacturer (Toyota Motor Corp.) did not want to sell the cars on the Japanese domestic market until after the American roll-out. Therefore, Toyota Motors added a “no export” clause to its dealership agreement with American Lexus dealers. However, in 1989 and 1990, Della Penna was purchasing Lexus automobiles from a Lexus dealer and exporting them to Japan for resale. Toyota Motors soon became aware that Lexus automobiles were being diverted to foreign markets and wrote its retail dealers reminding them of the “no export” policy. Toyota Motors also created an “offenders list” that included dealers and others it believed were exporting the vehicles. Della Penna’s dealership was on the list. By the end of 1990, Della Penna’s business dried up and it was no longer able to obtain Lexus automobiles.
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Topic Resources
Topic Outline
Third Party RightsTopic Refresher Course
Third Party Rights and Obligations