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Matrix Essentials v. Cosmetic Gallery, 870 F. Supp. 1237 (D.N.J. 1994)

Matrix Essentials, Inc. manufactures and sells a wide variety of hair care products. Hair dyes, colorings, and permanent wave products were marketed by Matrix for use by cosmetologists in a salon, but did not market with the intent that these products be sold to individual consumers for home use. It is well known in the industry that Matrix does not want its liquid products sold at retail by any seller other than a salon.

Cosmetic Gallery, Inc. operated four retail beauty supply stores in New Jersey, under the trade name Cosmetique. These stores offered for sale to retail customers a wide range of liquid products and colors and perms manufactured by a large number of different manufacturers. C & L Beauty Supply, Inc. operated a wholesale beauty supply business which sold at least some of the products carried in the Cosmetique stores to other retailers on a wholesale basis. C & L's product line included liquid products and perms and colors.

The Court of Appeals stated:

    "We find that the Matrix goods sold by the defendants were merchantable as that term is defined in N.J.S.A. § 12A:2-314. In all instances the products were genuine, unadulterated Matrix goods. The packaging overall was commercially presentable and not marred or defaced in a manner that would cause any consumer confusion or cause a consumer to think that Matrix was putting shoddy merchandise on the market."
The court denied Matrix's tortious interference with contract claim and decided that neither defendants' sale of defaced Matrix products nor its sale of Matrix perms created a likelihood of consumer confusion and entered judgment for defendants on all plaintiff's claims

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