Question
Benton Corporation contracted to sell materials to Wilson Company that Wilson needed to fulfill a contract it had with a third party. Knowing that Wilson
Benton Corporation contracted to sell materials to Wilson Company that Wilson needed to fulfill a contract it had with a third party. Knowing that Wilson desperately needed the materials, Benton telephoned one day before delivery was due and threatened to withhold delivery unless Wilson agreed to pay a higher price. Which of the following statements concerning this situation are correct?
A. A court is likely to consider Benton's behavior to constitute undue influence.
B. Benton has violated a fiduciary duty to Wilson.
C. Benton will not be in violation of contract law if Wilson could have immediately purchased the needed materials elsewhere at the original, lower price.
D. Two of the above are correct.
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