Legal Issues Essay

2131 WordsJul 22, 20129 Pages
MAC’s Shell Services, Inc, et al. v. Shell Oil Products CO, LLC et al. (Latisha Scruggs) (June 12, 2010) (Kelly Graduate School of Management) Mac’s Shell Service, Inc., et al. v Shell Oil Products Company LLC, et al. (No. 08-240) Parties in No. 08-240 Plaintiff: Mac’s Shell Service, Inc., et al. Respondent: Shell Oil Products Company LLC, et al. Counterclaim Parties No. 08-372 Plaintiff: Shell Oil Products Company LLC, et al. Respondent: Mac’s Shell Service, Inc et al. The matters concerning case No. 08-240 were heard on January 19, 2010 before the United States Supreme Court. The matters were decided on March 2, 2010. Mac’s Shell Service, Inc will herein be referred to as the franchise or franchisee. Shell Oil Products Company LLC will herein be referred to as the franchisor. The Plaintiff in this case purports that the Respondent forced their franchise, business, to agree to and enter into an agreement under protest. The Plaintiff cited that their fuel supply, which is a major part of their franchise, would be discontinued if the agreement were not entered and renewed. The Plaintiff reluctantly did enter into the renewed agreement. Now, the Respondent is terminating the franchise, leaving the Plaintiff with a breached agreement on behalf of the Respondent. The Respondent asserts that the company has undergone many changes in order to provide the consumer with their demands as well as protect the integrity of the franchises and the company. One of the cut backs made affected the rent subsidy program. Originally, franchises were offered lower monthly rent if their fuel sales went above the set quota. Since the merger with Texaco, this provision and luxury has been deleted from the new agreement, which alternately means a rise in monthly rents. Franchises not wishing to enter into the new Agreements are not being forced to do so,

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