Gulf Shores Leasing Corporation v. Avis Rent-A-Car System, Inc., Avis Rent-A-Car System, Inc. v. Gulf Shores Leasing Corporation

DAVIS, Judge:

In these diversity actions we are asked to determine whether Avis Rent-A-Car System acted within its contractual rights in summarily terminating, without cause, the license of its franchisee, Gulf Shores Leasing Corporation. On November 1, 1961 Avis had entered into an “Exclusive License Agreement” with another firm, Southwestern Automotive Leasing Corporation (“SALCO”), which gave the latter the right to operate a ear and truck rental franchise of the Avis system in Lake Charles, Louisiana. Later that month, Avis and SALCO executed identical agreements granting similar…