Thursday, December 26, 2013

Corenswet, Inc. v. Amana Refrigeration, Inc. case brief

Corenswet, Inc. v. Amana Refrigeration, Inc. case brief summary
594 F.2d 129 (1979)

CASE SYNOPSIS
Defendant manufacturer appealed decisions of the United States District Court for the Eastern District of Louisiana, which granted injunctive relief in favor of plaintiff distributor in a contract dispute.

CASE FACTS
Plaintiff was the exclusive distributor of certain home appliances manufactured by defendant. Plaintiff sued to prevent defendant from terminating the relationship, on the ground that defendant's attempted termination was arbitrary and capricious. The district court found that the termination was arbitrary and was therefore in breach of the distributorship agreement as well as of the Uniform Commercial Code's general "good faith" principle. Defendant challenged the district court's finding that the termination was arbitrary and without cause.

HOLDING
On appeal, the court held that an arbitrary termination was permissible under both the contract and the law of Iowa.

CONCLUSION
The court reversed the district court and vacated the injunction, stating that an arbitrary termination was permissible under both the contract and the law of Iowa.

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