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Contracts Keyed to Fuller
Sally Beauty Co. v. Nexxus Products Co.
Citation:
801 F.2d 1001 (1986)Facts
In 1979, Nexxus Products Company entered into an exclusive distribution agreement with Best Barber & Beauty Supply Company for the distribution of Nexxus hair care products throughout most of Texas. The agreement specified that cancellation could only occur on the anniversary date of the agreement with 120 days prior notice. In July 1981, Best was acquired by Sally Beauty Company, a wholly-owned subsidiary of Alberto-Culver, which manufactures hair care products that compete with Nexxus products. Shortly after the merger, Nexxus met with Sally Beauty’s president and subsequently terminated the distribution agreement, stating that it had “great reservations about allowing our NEXXUS Products to be distributed by a company which is, in essence, a direct competitor.” Sally Beauty sued, claiming that Nexxus breached the contract by failing to give proper notice and by terminating on a date other than the anniversary date.
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