Truserv Corp. v. Flegles
By In the United States Court of Appeals for the Seventh Circuit
- Release Date: 2005-08-12
- Genre: Law
Description
This case arises out of a twenty-year relationship between the owners of a hardware store and the wholesaler with which they worked. Flegles, Inc. ("Flegles"), owned and operated a True Value hardware and lumber store in Bardwell, Kentucky. By becoming a member of the TruServ cooperative, Flegles was able to use the True Value trademark and to benefit from group buying power and group billing procedures. On January 20, 2000, Flegles and TruServ executed an updated written agreement ("the member agreement"), in which Flegles agreed "to pay on the date due all invoices on accounts receivable statements," and to immediately pay all amounts due upon termination as a member. During the next three years, Flegles purchased merchandise and services from TruServ pursuant to the member agreement. TruServ also advanced cash to Flegles for the purpose of making improvements to the store. Additional contracts were executed to secure these advances in which Flegles agreed to maintain an acceptable credit history and to remain a member in good standing of TruServ. If Flegles ceased to be a member in good standing, the debt would be considered defaulted and Flegles would be required to repay the advances immediately.
