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Walgreens files lawsuit against video game company

Retailers in Texas and around the country often order products on what is known as a guaranteed sale basis. This type of agreement allows stores to return unsold goods and obtain a refund. The pharmacy chain Walgreens has filed a lawsuit that accuses a video game company of reneging on a guaranteed sale agreement. The Illinois-based retailer is seeking about $1.62 billion for 66,500 unsold video games and microconsoles.

Walgreens claims in its breach of contract lawsuit that AtGames offered to take back unsold games for a refund and agreed to pay fees and shipping costs. The litigation does not specify the games or products involved, but it does state that Walgreens paid between $15 and $38 for them. Walgreens says that allowing AtGames to avoid its contractual obligations would give the company the opportunity to sell the same items twice and violate the basic principles of equity and justice. AtGames manufactures plug-and-play video games and microconsoles that can be used with game systems like the Sega Saturn and Atari 2600.

The Walgreens lawsuit is not the only legal issue AtGames is currently facing. Bandai Namco Entertainment America recently filed a lawsuit that accuses the company of infringing on its intellectual property rights. Bandai Namco says AtGames used images of the Ms. Pac Man character on a home video game arcade cabinet and included Ms. Pac Man software without their consent. Bandai Namco is seeking a jury trial and an injunction to prevent further infringement.

Attorneys with business law experience may seek to avoid contract disputes like this one by ensuring that the language of agreements is clear and all of the parties involved understand their rights and obligations. When disputes do arise, attorneys may suggest pursuing mediation or arbitration as an alternative to potentially expensive and public legal battles.

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