Nasar Enterprises, Inc. v. BP West Coast Products
Nasar Enterprises, Inc. (Nasar), Ganesh Group Corporation (Ganesh), KJYT Visions, Inc. (KJYT), and Dhillon Partners, LLC (Dhillon) (collectively the ARCO dealers) are franchisees of BP West Coast Products LLC (BPWCP). They operate franchise gasoline stations at various locations in California. In 2013, the ARCO dealers sued BPWCP alleging it had failed to set gasoline prices in good faith pursuant to an open price term in their franchise agreement. The ARCO dealers also alleged that BPWCP breached the franchise agreement, the implied covenant of good faith and fair dealing, and the implied warranty of merchantability by selling them defective computer systems.
A jury found that BPWCP had not set prices in bad faith or at commercially unreasonable levels, defeating the ARCO dealers’ claim based on the implied covenant of good faith and fair dealing.
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