Question
32) Quality Yarn, Inc. had a contractwith American Knitware Co. to make monthly deliveries of yarn for 3 years beginning in 2018. For two years,
32) Quality Yarn, Inc. had a contractwith American Knitware Co. to make monthly deliveries of yarn for 3 years beginning in 2018. For two years, Quality Yarn made regular deliveries to American Knitwear, and American Knitwear made monthly payments to Quality Yarn. In 2020,American Knitwear sold its manufacturing operations to a new owner, Global Mills Corp., and assigned to them all of its contracts with suppliers, including Quality Yarn's. All rights were assigned and all duties were delegated from American Knitwear to Global Mills.
a) Does Quality Yarn have to continue making monthly deliveries to Global Mills, and does Global Mills have to continue making payments to Quality Yarn? Why or why not?
b) What difference would it make if Global Mills failed to promptly notify Quality Yarn of its new ownership?
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