Question
Kozlowski and Gromada enter into a written contract wherein Kozlowski agrees to accept all of Gromadas output of Polish-style pickles (in pickle jars) during the
Kozlowski and Gromada enter into a written contract wherein Kozlowski agrees to accept all of Gromadas output of Polish-style pickles (in pickle jars) during the course of a year at a stated negotiated price. This relationship goes on for four years during which time Gromada has tendered the following amounts of pickles:
YEAR 1: 20,000 jars.
YEAR 2: 22,000 jars
YEAR 3: 24,500 jars
YEAR 4: 29,000 jars.
In year five, Gromada notifies Kozlowski and he intends to ship 50,000 jars at the at the agreed upon contract price-- $3.00 per jar. It appears that the price of Polish-pickles had dropped to $2.00 per jar and Gromada now wants to unload his pickles at the higher contract price than the pickles are now commanding in the market.
Answer the following:
What specific type of contract is involved here?
What provision of the UCC covers this contract?
What standards will be used to judge this contract under the Code?
Decide the case. In your opinion, how many jars of pickles will Kozlowski be required to accept? Upon what do you base your conclusion?
Suppose that you learn that Gromada had projected that he would be tendering around 33,000 jars in year 5. Would that fact change your thinking? Why or why not?
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