Question
Read the following scenario and answer the question in 510 sentences. In December of 2004, the company you own entered into a 20-year contract with
Read the following scenario and answer the question in 510 sentences. In December of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. The contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. Until February 2017, the supplier provided processed grain which could easily be used in your manufacturing process. However, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. The supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. Your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. Over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. After speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. Weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? Which would be the best option for your business and why?
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