CVS Pharmacy, Inc., entered into a contract with Dan Cake, a company in Portugal, for Dan Cake
Question:
CVS Pharmacy, Inc., entered into a contract with Dan Cake, a company in Portugal, for Dan Cake to ship tins of cookies for sale at CVS pharmacies. The cookies were originally supposed to be delivered on or before September 7, 2007. There were several delays and the cookies did not arrive at CVS warehouses until between December 5 and December 15, 2007. Because of the delay, CVS proposed a new arrangement whereby it would “pay on scan,” meaning that it would pay Dan Cake for all cookies sold up through December 25, 2007, but would not pay for any other cookies shipped. CVS only sold $19,000 of the cookies and the original contract had been for $197,351.08. CVS paid Dan Cake the $19,000 and sent back the remaining cookies. Dan Cake filed suit saying that CVS had taken delivery and owed Dan Cake for the cookies. What should the court do with the issues in the case? [Dan Cake (Portugal) S.A. v. CVS Pharmacy, Inc., 862 F. Supp. 2d 120 (D.R.I.)]
Step by Step Answer:
Business Law Principles for Today's Commercial Environment
ISBN: 978-1305575158
5th edition
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene