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Quality King

Executive Summary

New Jersey District Court of Appeals overturned an Aug. 22, 1985 ruling restraining Quality King from moving certain J&J products, including 600,000 Reach toothbrushes and baby products, which were allegedly purchased from J&J Ltd. (Great Britain) by Dal for sale in Poland only ("The Pink Sheet" Sept. 16, 1985, T&G-9). In overturing the opinion, the appeals court said: "The district court erred in concluding on this record that Quality King had a duty to inquire into the chain of title of the grey market goods. Since the only inference supported by the record is that Quality King had neither knowledge nor suspicion of a fraud by Dal, appellees did not demonstrate a likelihood of ultimate success and Quality King was improperly enjoined. pendente lite".

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