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Business Law
In this opinion the 7th Circuit Court of Appeals sets the record straight about an alleged Output-Requirements Contract and settles a dispute based on the terms of a supplier agreement. At the conclusion of its analysis the Court determined that in effect nothing in the parties' contract satisfied the 3-prong test applicable to Output-Requirement Contracts,...
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The 7th Circuit points out that under Indiana law a buyer who has received non-conforming goods cannot sue the seller for negligent misrepresentation to avoid the Economic Loss Doctrine, which limits it to contract remedies for purely economic losses. There is no basis for transforming a breach of contract claim into a tort claim to...
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7th Circuit Court of Appeals holds that auctioning off a lawsuit owned by a Debtor in Bankruptcy placed the claim-buyer ahead of other creditors; it also found that the claim-buyer had not been a "good faith" purchaser, and that no valid interest was impaired by rescinding the sale so the Debtor could pursue its suit...
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Diversity jurisdiction brought this complex commercial case before the 7th Circuit, which applied Illinois law to a series of trademark and business questions. At issue was whether the developer of chenille fabric under the tradename "Kashwere" (Selzer) could prevent a series of transactions via a non-compete agreement ("NCA") and, conversely, whether the buyer of the...
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