John Paul Mitchell Systems, Inc., a manufacturer of specialized high-quality hair care products, has made it a policy to sell its products only through “hair care professionals.” Only better beauty salons and specialty stores are selected by the company to represent its products. Yet somehow, Paul Mitchell products were being sold by Walmart stores in Texas. Upon hearing this, the company filed suit against Walmart, alleging that Walmart was selling substandard batches of Paul Mitchell products and had bought the products from a former Mitchell Systems supplier. The batch of products in question had been rejected by Paul Mitchell Systems because of poor quality and, therefore, should not have been made available for resale through any retailers, let alone Walmart. Mitchell Systems requested that the court issue a temporary restraining order that would forbid Walmart from selling the Paul Mitchell products. Why did Mitchell Systems go to such lengths to prevent these products from being sold by Walmart? Discuss in terms of the channel member selection strategy apparently being used by the manufacturer.
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