AM/PM Franchise Assn. v. Atlantic Richfield Co.
Pennsylvania Supreme Court
584 A.2d 915 (1990)
Relevant factsFree
ARCO's (defendant) supply of defective experimental unleaded gasoline to its exclusive franchisees, the AM/PM Association (plaintiffs), allegedly damaged customers' vehicles and reduced the Association's sales; because the franchise lease barred the Association from buying substitute gasoline elsewhere, it sued ARCO for breach of warranty, but the lower courts found the claimed goodwill damages too speculative and denied recovery.
IssueFree
Whether primary profits, secondary profits, and goodwill damages are all recoverable as consequential damages for breach of warranty so long as the jury has a reasonable basis from which to calculate them.