K Mart Corporation v. Cartier, Inc.
United States Supreme Court
486 U.S. 281 (1988)
Congress sought to prevent the import of gray-market goods when it enacted § 526 of the Tariff Act of 1930, which prohibited the import of foreign-manufactured merchandise containing a trademark owned by a United States citizen or entity. The United States Customs Service (Customs) issued a regulatory rule that created exceptions to § 526, allowing the import of goods that would otherwise be banned. Cartier (plaintiff) was an association of trademark holders. Cartier brought a declaratory-judgment action to have the Customs rule invalidated for being inconsistent with § 526. K Mart (defendant) intervened to defend the rule. The district court upheld the rule. The court of appeals reversed. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Kennedy, J.)
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