AM/PM Franchise Assn. v. Atlantic Richfield Co. case brief
AM/PM Franchise Assn. v. Atlantic Richfield Co. case brief summary
584 A.2d 915 (1990)
Plaintiff mini mart owners appealed
from an order of the Superior Court of Pennsylvania affirming a lower
court order that sustained defendant gasoline supplier's preliminary
objections in the nature of a demurrer and dismissed their action for
damages resulting from breach of warranty.
The court found that plaintiff
mini-mart owners had alleged sufficient facts to sustain a cause of
action when they averred that the gasoline they purchased from
defendant gasoline supplier under an exclusive contract was not in
conformance with the warranties made and resulted in their suffering
Therefore the court reversed the superior court
decision that had affirmed a lower court order dismissing the suit on
The court held that there were three types of
lost profits recoverable as consequential damages pursuant to 13
Pa. Cons. Stat. §§ 2714, 2715 of the Uniform Commercial
(1) loss of primary profits,
(2) loss of secondary profits, and
(3) good will damages, which represented a new direction for the
The court reversed and remanded the decisions of the lower
courts as to the breach of warranty claims and otherwise
CONCLUSION As plaintiff mini mart owners stated a
cause of action in their U.C.C. breach of warranty suit for damages
against defendant gasoline supplier for nonconforming gasoline, the
court reversed and remanded the order of the superior court affirming
dismissal of plaintiff's suit but otherwise affirmed.
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