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Contracts Keyed to Burton
Sally Beauty Co. v. Nexxus Prods. Co.
Citation:801 F.2d 1001
Nexxus Products Company (“Nexxus”) (defendant) entered into a contract with Best Barber & Beauty Supply Company, Inc. (“Best”), in which Best would be the exclusive distributor of Nexxus hair care products throughout most of Texas. Best merged into Sally Beauty Company, Inc. (“Sally”) (plaintiff). Sally was a wholly-owned subsidiary of Alberto-Culver Company, a competitor of Nexxus’. As a result of the merger, Sally succeed to Best’s rights and interests in all of Best’s contracts. Shortly after the merger, Nexxus informed Sally that it would not let allow them to distribute Nexxus products. Sally sued Nexxus, claiming that the latter had breached the distribution agreement.
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