Question
Manufacturing Corp. is engaged in the business of making and selling specialized machinery to the automotive industry. In its business, Manufacturing uses large quantities of
Manufacturing Corp. is engaged in the business of making and selling specialized machinery to the automotive industry. In its business, Manufacturing uses large quantities of steel. In July, Manufacturing entered into an agreement with Steel Co. under which Manufacturing agreed to buy rolled steel exclusively from Steel Co. and Steel agreed to provide Manufacturing a 10% discount from the price it charged its other customers. Steel agreed to the discount because it expected to sell large quantities of rolled steel to Manufacturing.
In September Manufacturing started using more plastic in making its product. The result of this change was to cut Manufacturing's needs for Steel in half. Since Manufacturing is now buying less steel, Steel Co. has refused to grant Manufacturing Co. the 10% discount. Manufacturing has refused to pay anything more than 90% of the amounts Steel claims it is owed. Steel has refused to ship steel to Manufacturing unless Manufacturing pays the 10% difference. Manufacturing has therefore been forced to purchase steel from other steel companies.
draft arguments forManufacturing Corp., including what damages it may seek if it sues Steel Co.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started