Answer both questions based on your knowledge of the Uniform Commercial Code (206 and 207 is what the professor said in class), the Restatement (Second) of Contracts, and general principles of the common law of contracts.

The Baker and The Supermarket

Baker urgently needed more money. He signed a contract with Supermarket to sell as many cookies as needed by Supermarket. His negotiation position, however, was weak, and he received only 20% of the market price. Nonetheless, he promised to give $500,000 to the local Zoo. In return, the Zoo promised to name an animal section after Baker.

After one year into the contract, Baker decided that he would increase his price for cookies from 20% to 40%. Supermarket quickly ordered 10,000 cookies, on the day before the price increase. Baker sent 1,000 cookies with a letter, saying that this would be all Supermarket would get at the old price. Supermarket disputed this as they still wanted to buy 10,000 cookies at the original price.

In the end, Supermarket wanted to stop selling Baker's cookies altogether and started an advertisement campaign for cookies, 50% off the regular price, for as long as the supply lasted.