Question
Target, Inc. ordered 100,000 artificial Christmas trees from Supplier A in Shanghai and 100,000 artificial Christmas trees from Supplier B in Taipei, for delivery by
Target, Inc. ordered 100,000 artificial Christmas trees from Supplier A in Shanghai and 100,000 artificial Christmas trees from Supplier B in Taipei, for delivery by October 15th, for sale during the holiday season. Both Suppliers charged $30 per tree. Supplier A was able to deliver its 100,000 trees on time, but Supplier B encountered a meltdown and notified Target that it could only deliver 50,000 trees on time. Target then asked Supplier A to operate additional overtime production lines, and Supplier A was able to deliver on time an additional 25,000 trees at $50 each (the $20 per tree increase was mostly due to overtime costs and using air freight instead of ocean vessels to deliver on time). Target sold out the entire 175,000 trees it had available at an average profit of $40 per tree. In light of the reduced supply available, Target cancelled billboard and other marketing promotions it had scheduled for markets where it wouldn't have adequate inventory to sell, and incurred $25,000 in cancellation fees and wasted production costs. Discuss what claims Target can bring against Supplier B and what amount of damages it most likely could recover on each claim. Use specific dollar amounts and explain how you arrived at them.
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