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AM/PM (P) represents a class of over 150 franchisees of Arco (D) that operated mini-marts in Pennsylvania and New York. D began experimenting with its unleaded gas formulations and provided its franchisees with an unleaded gas blended with oxinol. P was required to sell that special blend of gas from D and was given no opportunity to buy regular unleaded gas during a three and a half-year period. P claims that numerous purchasers of the oxinol gas experienced poor engine performance and physical damage to fuel systems P claims that the gas did not conform to D's warranties about the product. As a result of these problems, P suffered a precipitous drop in the volume of their business allegedly due to defective oxinol blend gas. Ps sued D on a breach of warranty, breach of implied duty, misrepresentation and exemplary damages. Ps wanted lost profits, consequential and incidental damages. The trial court sustained D's preliminary objections and dismissed the action. P appealed.

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