Tele-Save Merchandising Co. v. Consumers Distributing Co.

814 F.2d 1120 (1987)

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Tele-Save Merchandising Co. v. Consumers Distributing Co.

United States Court of Appeals for the Sixth Circuit
814 F.2d 1120 (1987)

Facts

Tele-Save Merchandising Co. (Tele-Save) (plaintiff), an Ohio corporation, and Consumers Distributing Co. (Consumers) (defendant), a Canadian corporation with an office in New Jersey, negotiated a contract pursuant to which Consumers would supply Tele-Save with products and services from its catalog and Tele-Save would operate a retail showroom under Consumers’ direction. The parties’ contract included a choice-of-law clause identifying New Jersey law as governing the contract. Several months after Tele-Save opened its showroom, Consumers announced that it was canceling its catalog program, leading to a contractual dispute. Tele-Save filed a lawsuit in federal district court in Ohio, alleging that Consumers had violated the Ohio Business Opportunity Plans Act (Ohio act). Consumers moved for summary judgment, arguing that the Ohio act was inapplicable because the parties’ contract was governed by New Jersey law. Tele-Save argued that the choice-of-law provision violated the fundamental public policy of Ohio and that Ohio had a greater interest in the resolution of the lawsuit than did New Jersey. The district court granted Consumers’ motion for summary judgment, and Tele-Save appealed.

Rule of Law

Issue

Holding and Reasoning (Martin, J.)

Dissent (Milburn, J.)

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