Sally Beauty Co. v. Nexxus Products Co.
United States Court of Appeals for the Seventh Circuit
801 F.2d 1001 (1986)
In 1979, Best Barber Beauty & Supply Company (Best) entered into a contract with Nexxus Products Co. (Nexxus) (defendant), a California producer of hair care products. The contract provided that Best would promote and be the exclusive distributor of Nexxus products in Texas. The letter agreement between Best and Nexxus was executed following several days of meetings between Nexxus’ vice president and Best’s president. In 1981, Sally Beauty Company (Sally) (plaintiff) purchased Best and merged the businesses. As a result of the merger, Sally received assignment, as successor in interest, of all of Best’s contracts, including the contract with Nexxus. Following the acquisition and merger, Nexxus renounced its agreement with Best, because Sally, as a wholly owned subsidiary of Alberto-Culver which also produced hair care products, was under the control of a direct competitor of Nexxus. Sally sued Nexxus alleging, inter alia, breach of contract. The district court granted Nexxus’ motion for summary judgment finding that the parties based their agreement on “a relationship of personal trust and confidence,” and therefore Best’s performance could not be delegated. Sally appealed.
Rule of Law
Holding and Reasoning (Cudahy, J.)
Dissent (Posner, 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 174,000 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.