Black Light Corp. v. Ultra-Violet Products, Inc.

In this action for damages for breach of contract, plaintiff appeals from a judgment in favor of defendants.

Ultra-Violet Products, Inc., is a California corporation which manufactures and sells certain products having light properties. On March 30, 1956, it entered into an agreement with plaintiff Black Light Corporation of Los Angeles, hereinafter called Black Light, in which the latter agreed to act as distributor of the products manufactured or sold by UltraViolet. The term of the agreement was 10 years with automatic renewal for successive 10-year periods, subject to termination as therein provided. The territory allocated to Black Light was 10 counties of Southern California. On the same day Black Light Corporation of Los Angeles entered into an agreement with Black Light Corporation of America relating to cooperative advertising of the products of Ultra-Violet, which latter was the owner of all the outstanding stock of Black Light of America. In the agreement with Black Light of America, the distributor promised to pay to the former a sum equal to 2.5 per cent of its monthly purchases from UltraViolet. An equal sum was to be collected from Ultra-Violet and the same was to…