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Wright-Moore Corporation v. Ricoh Corporation
United States Court of Appeals for the Seventh Circuit
908 F.2d 128 (1990)
Ricoh Corporation (defendant) was a photocopier company incorporated in New York. Wright-Moore Corporation (Wright) (plaintiff) was an Indiana corporation. Wright had a franchise agreement with Ricoh. The contract had a choice-of-law provision making New York law the governing law for any dispute arising from the contract. Ricoh later canceled the franchise agreement because the agreement did not serve Ricoh’s own economic interest. Ricoh did not claim any wrongdoing by Wright. Wright sued for breach of contract and other claims. The trial court declined to apply New York law, and instead applied Indiana law, which only allowed a franchise agreement to be canceled for good cause. The trial court held that under Indiana law, Ricoh had terminated Wright in good faith. The trial court entered summary judgment for Ricoh, and Wright appealed.
Rule of Law
Holding and Reasoning (Flaum, J.)
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