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Acme Corporation contracted to sell Bellwether Corporation some materials that Bellwether needed to fulfill a contract it had with a third party. Knowing that Bellwether

Acme Corporation contracted to sell Bellwether Corporation some materials that Bellwether needed to fulfill a contract it had with a third party. Knowing that Bellwether was in desperate need of the materials, Acme called Bellwether the day before delivery was due and threatened to withhold delivery unless Bellwether agreed to pay a higher price. Bellwether could not get the materials elsewhere and would suffer a huge financial loss without them, so it agreed to pay the higher price. Bellwether later asserts that its promise to pay the higher price is unenforceable because it was the product of duress. Which of the following is true regarding this situation?

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Under modern contract law, Acme's threat to cause Bellwether economic harm may constitute an unintentional tort, but not duress.

Acme's threat could not be considered duress because it had a legal right to seek a higher price for its goods.

Under modern contract law, Acme's threat to cause Bellwether economic harm could be considered duress and the contract may be considered voidable.

Acme only exercised superior bargaining power and is therefore not at fault.

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