H.C. Blackwell Co. held a franchise from Kenworth Truck Co. to sell its trucks. After 12 years, the franchise was nearing expiration. Kenworth notified Blackwell that the franchise would not be renewed unless Blackwell sold more trucks and improved its building and bookkeeping systems within the next 90 days. Blackwell spent $90,000 attempting to meet the demands of Kenworth but could not do so because a year was required to make the specified changes.

Kenworth refused to renew the franchise. Blackwell sued Kenworth for damages under the federal Automobile Dealers’ Day in Court Act. Blackwell claimed that Kenworth had refused to renew in bad faith. Decide. [Blackwell v Kenworth Truck Co., 620 F2d 104 (5th Cir)]

980 Part 7 Business Organizations AppendixLO1