Shell Oil vs. Marinello

Shell Oil vs. Marinello - The law must read that a...

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Econ 404 5/6/2009 rmf34 Shell Oil vs. Marinello Judge(s): Sillivan, J. Court: Supreme court of NJ (Location, Date): July 1973 Plaintiff: Shell Oil Case Summary: Shell supplies it’s stations with gas and products. The station is purchased as a franchise. A yearly contract is renewed and if the franchise is not meeting standards, it can be shut down. In this case, a franchise owned since 1959 was shut down in 1973. Shell said that it wasn’t meeting standards, but evidence showed that it was.
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Unformatted text preview: The law must read that a franchise must not be performing its obligations in order to be shut down. This prevents a huge imbalance of power. If the parent company can shut franchises down at will, there is a huge windfall loss for the franchise owner who invested time and money and customer report. Defense: Marinello Verdict: Marinello was unrightfully shut down. Law and Economics Notes:...
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