Ivan's Tire Service Store, Inc. v. Goodyear Tire & Rubber Co.

517 P.2d 229, 10 Wash. App. 110, 1973 Wash. App. LEXIS 1089
CourtCourt of Appeals of Washington
DecidedDecember 10, 1973
Docket541-3
StatusPublished
Cited by9 cases

This text of 517 P.2d 229 (Ivan's Tire Service Store, Inc. v. Goodyear Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ivan's Tire Service Store, Inc. v. Goodyear Tire & Rubber Co., 517 P.2d 229, 10 Wash. App. 110, 1973 Wash. App. LEXIS 1089 (Wash. Ct. App. 1973).

Opinion

Munson, J.

Ivan’s Tire Service Store, Inc., as plaintiff, brought an action against the Goodyear Tire & Rubber Company for damages, alleging that Goodyear interfered with plaintiff’s contractual agreements, illegally and improperly solicited plaintiff’s customers in an attempt to destroy plaintiff’s business, and by unfair pricing, intended to and did destroy plaintiff’s business. Plaintiff asserted that defendant violated both the Unfair Practices Act, RCW 19.90, and the Consumer Protection Act, RCW 19.86. Defendant denied plaintiff’s claims and asserted, as a cross claim, that it had furnished goods, wares and merchandise to plaintiff during the year 1970 and payment therefor in the amount of $37,782 was past due and owing. After a jury trial, a verdict was entered for the plaintiff in the amount of $223,682.09 and for the defendant upon its cross claim in the amount of $37,782.09. Both parties appeal.

In capsule form, we hold there is insufficient evidence to *112 justify submitting to the jury the issues relating to violations under the Unfair Practices Act, RCW 19.90; no evidence was introduced of defendant’s per unit cost in purchasing tires. There is sufficient evidence to justify submitting the issue of unfair competition under the Consumer Protection Act, RCW 19.86. Other assignments of error are also discussed.

Plaintiff commenced business in Pasco, Washington, in 1965 as a wholesale and retail tire sales store with related services. During plaintiff’s period of existence it had a nonexclusive dealership agreement with the defendant under which defendant supplied tires and other products to plaintiff. Under that agreement Goodyear retained the right to sell to other customers in the plaintiff’s trade area and elsewhere.

Goodyear supplied to its dealers a dealer net pricing guidebodk showing the various suggested selling prices for tires, starting with “list” price as the highest price and moving down through “code” price, “A” price, “AA” price, and “AAA” price. As concisely stated in plaintiff’s brief, the final sales price was determined as follows:

Depending upon the type of sale, i.e. wholesale, retail or commercial, the ultimate price is derived from a percentage of the “code” price. “A” price is the wholesale price which plaintiff utilized with small associate dealers who would pick up only an occasional tire . . . “AA” price was for a medium sized dealer that would make about $5,000.00 purchases annually. “AAA” was the established price for larger dealers, those who purchased $5,000.00 to $10,000.00 annually . . . The “AAA” price schedule was the best and lowest price that plaintiff would ever utilize to any of his accounts, commercial, wholesale or associate dealer . . . , barring any special price discounts given to plaintiff or unusual circumstances. . . . Plaintiff’s normal buying price for these tires was “AAA” less ten percent.

Other pricing procedures were also established for other sales situations. For instance, net state prices were prices set by Goodyear to be charged by dealers when selling to *113 government or municipal agencies such as school districts and PUD’s. On such sales plaintiff received a delivery commission of 10 percent. Goodyear also authorized sales at below established selling prices in order to meet prices being offered by competitive dealers. This was known as “price Support.” Plaintiff would submit a request for price support and Goodyear would then authorize a lower price. On these sales plaintiff was paid a delivery commission of 5 percent.

Plaintiff’s business had improved yearly until 1970, when it faltered financially and ultimately closed in November of 1970. The gross sales for the first year of operation, 1965, were $95,000. In 1966 gross sales were $123,000 and the 1967 gross sales were $154,711. In the year 1968, plaintiff opened a branch store in Kennewick, Washington, and its gross sales for both stores for that year amounted to $283,238. In 1969 the gross sales were $346,218 and then in its final year, 1970, the gross sales dropped to $184,000.

The defendant opened its own company tire sales store in Richland, Washington, in April, 1970. There had been discussion between plaintiff and defendant about the opening of this store, which at one time had included discussions about the possibility of defendant purchasing plaintiff’s business and plaintiff’s president, Harry Ivans, then operating the defendant’s store. Such a result did not occur.

Plaintiff alleged defendant effectively and illegally destroyed plaintiff’s business when defendant established its own retail store, solicited many of plaintiff’s established customers and succeeded in obtaining their business by selling tires to these customers at prices equal to or below the cost at which the plaintiff purchased tires from the defendant. It was further alleged that defendant sold tires to parties in plaintiff’s trade area at prices which plaintiff could not meet and still receive a reasonable profit.

Defendant asserts 17 assignments of error upon appeal. A majority of the assignments of error involve the applicability of RCW 19.90 (the Unfair Practices Act), RCW 19.86 (the Consumer Protection Act), and instructions given in *114 the language of those statutes. Since numerous assignments refer to RCW 19.90, and because the trial court emphasized that statute, we will discuss the applicability of that act first. Thereafter, the applicability of RCW 19.86 to the facts in this case and the remaining assignments of error will be reviewed.

RCW 19.90

RCW 19.90.040

The trial court instructed 1 in the language of RCW 19.90.040, which reads as follows:

It shall be unlawful for any person engaged in business within this state to sell any article or product at less than the cost thereof to such vendor,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
517 P.2d 229, 10 Wash. App. 110, 1973 Wash. App. LEXIS 1089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ivans-tire-service-store-inc-v-goodyear-tire-rubber-co-washctapp-1973.