AM/PM FRANCHISE ASSOCIATION V. ATLANTIC RICHFIELD COMPANY
584 A.2d 915 (1990)
NATURE OF THE CASE: AM/PM (P), appealed from an order affirming a lower court order that
sustained Atlantic's (D) preliminary objections in the nature of a demurrer and dismissed
their action for damages resulting from breach of warranty.
FACTS: AM/PM (P) represents a class of over 150 franchisees of Arco (D) that operated
mini-marts in Pennsylvania and New York. D began experimenting with its unleaded gas
formulations and provided its franchisees with an unleaded gas blended with oxinol. P was
required to sell that special blend of gas from D and was given no opportunity to buy
regular unleaded gas during a three and a half-year period. P claims that numerous
purchasers of the oxinol gas experienced poor engine performance and physical damage to fuel
systems P claims that the gas did not conform to D's warranties about the product. As a
result of these problems, P suffered a precipitous drop in the volume of their business
allegedly due to defective oxinol blend gas. Ps sued D on a breach of warranty, breach of
implied duty, misrepresentation and exemplary damages. Ps wanted lost profits, consequential
and incidental damages. The trial court sustained D's preliminary objections and dismissed
the action. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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