Tabberone is pronounced tab ber won not tay ber own

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This information is taken directly from the court opinion. It is not taken out of context nor is it altered.

From John Paul Mitchell v Randalls Food Markets, 17 S.W.3d 721 (TX 2000) Paul Mitchell markets its hair care products exclusively to authorized distributors and salons; Ultimate Salon is one of these authorized distributors. Jade is not. Jade sells many brands of professional hair products to retail outlets. Randalls is a retail grocery store chain in Texas that has sold Paul Mitchell products for several years. Jade is the sole supplier of Paul Mitchell products to Randalls. Paul Mitchell is one of many manufacturers that wants its hair care products sold only by salons. Paul Mitchell's thirty-three authorized distributors agree to sell its products only to those in the professional beauty industry and not to retail outlets. The 53,000 authorized salons agree to use the Paul Mitchell products in the salon or sell them directly to customers. Paul Mitchell emphasizes that this closed distribution chain enables it to monitor 727 the quality of its products and provide professional advice as to their proper use. More importantly, this exclusive marketing enhances the reputation and desirability of Paul Mitchell products and promotes sales with a higher profit margin. To monitor quality, Paul Mitchell imprints a batch code on each bottle that permits defective products to be tracked. A second ultraviolet code that identifies distributors assists Paul Mitchell in tracing leaks in its closed distribution system. The diversion of products to mass retail outlets diminishes the upscale reputation of Paul Mitchell to salons and their clientele. Paul Mitchell has attempted to stop the diversion of products from its closed distribution chain both by suing those who supply products to retail outlets and by suing the retail outlets themselves. In this instance, Paul Mitchell first sued Jade, seeking to prevent its unauthorized acquisition and sale of Paul Mitchell products. After reaching a settlement with Jade that Paul Mitchell thought prevented its future sale of any Paul Mitchell products, Paul Mitchell dismissed that lawsuit and sued Randalls. Jade intervened in the second lawsuit because it had agreed to defend and indemnify Randalls in the event of such a dispute.