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Sebastian v Longs Drug Stores, 53 F.3d 1073 (9th Cir 1994)

Sebastian manufactures hair care products including shampoos, conditioners, hair sprays and styling lotions. Sebastian seeks to have its products distributed to consumers only through professional salons. It sells only to professional salons and distributors who are members of an organization created and controlled by Sebastian called the "Sebastian Collective Membership Program." Members must agree to resell Sebastian's products only to other members of Sebastian's "Collective" or to salon clientele.

Longs purchases and resells Sebastian products, although it is not a member of Sebastian's "Collective." Longs presumably purchases Sebastian products from a salon or distributor who sells the product to Longs in violation of its agreement with Sebastian. The district court preliminarily enjoined Longs from selling Sebastian's hair care products. Longs appealed.

Discussing almost entirely nothing more than the first sale doctrine, the court of appeals reversed.

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