Bak-a-lum Corp. of America v. ALCOA Bldg. Prods., Inc.
Supreme Court of New Jersey
351 A.2d 349 (1976)
ALCOA Bldg. Prods., Inc. (ALCOA) (defendant) is a manufacturer of aluminum siding products. Bak-a-lum Corp. of America (BAL) (plaintiff) became an exclusive distributor of ALCOA products through a verbal agreement with ALCOA in 1962 or 1963. ALCOA terminated the exclusive distributorship agreement with ALCOA in January 1970 by appointing four additional distributors in the same geographic area. At the time, BAL had recently entered a new lease for a significantly expanded warehouse facility for use in its distribution of ALCOA products. BAL brought suit for breach of contract in New Jersey state court against ALCOA. At trial, BAL introduced evidence that ALCOA’s termination of the exclusive distributorship agreement would cost BAL $10,000 per month in lost profits. The trial court held that there was a binding and enforceable agreement between ALCOA and BAL that was terminable only after a reasonable period of time and on reasonable notice. Additionally, the trial court found that ALCOA purposely kept its decision to break the exclusive distributorship agreement a secret from BAL because it did not want to discourage BAL from zealously selling ALCOA products. The trial court concluded that a reasonable period time had passed on the agreement, and concluded that a reasonable period of notice to BAL would be seven months. The trial court determined BAL’s monthly lost profits to be $5,000 and awarded BAL $35,000 in damages. Both parties appealed.
Rule of Law
Holding and Reasoning (Conford, J)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 175,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.