In a 1975 contract, Eureka was given the exclusive right to sell spring water and other products under the Ozarka trade name in 60 Oklahoma
In a 1975 contract, Eureka was given the exclusive right to sell spring water and other products under the Ozarka trade name in 60 Oklahoma counties in exchange for \($9,000\) paid to Arrowhead, which owned the trade name. In 1987, Arrowhead was acquired by Perrier Group of America, which was subsequently purchased in 1992 by Nestle, making Nestle the owner of the trade name Ozarka. Nestle then began delivering spring water under the Ozarka name within Eureka’s territorial claim. In 1997, this became known to Eureka, and Nestle agreed to pay Eureka royalties of 30 cents a case and 50 cents a case for bulk purchases. Eureka would receive from Nestle 67 checks totaling about \($2.5\) million over the next 10 years. In late 2003, Nestle unilaterally reduced the payment to 25 cents a case. Eureka invoiced Nestle for the difference but was never paid. On October 15, 2007, Eureka received a letter which stated that Nestle would no longer pay royalties. Who should prevail and why? [Eureka Water Company v. Nestle Waters North America, Inc., U.S. Court of Appeals for the 10th Circuit 690 F.3d 1139, 2012 U.S. App. LEXIS 16149, 78 U.C.C. Rep. Serv. 2d.
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In this case the key legal issue revolves around the contractual agreement between Eureka and Nestle regarding the use of the Ozarka trade name and th... View full answer
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Dynamic Business Law
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs
6th Edition
1260733971, 978-1260733976
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