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Wholesale Tools Corporation ( WTC ) is a wholesale provider of power tools. Six months ago, Mac Jones, national sales director for WTC , negotiated

Wholesale Tools Corporation (WTC) is a wholesale provider of power tools. Six months ago, Mac Jones, national sales director for WTC, negotiated a multi-year contract to provide power tools to Fixlt, Inc., a national retail hardware chain. Under the contract, WTC can provide Fixlt with power tools made of materials of lesser quality at a lesser price. Therefore, Fixlt can charge its retail customers a lower price, providing an attractive profit for both companies. Six months into the contract, Mac and Fixlt are disappointed that, although the power tools meet the technical specifications of the contract, the tools are not selling. Furthermore, Fixlt is receiving complaints from its customers about the quality of the power tools, prompting Fixlt to consider canceling the contract. In retrospect, in its eagerness to land a large contract with Fixlt, Mac failed to adequately consider the needs of the
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