Firwood Manufacturing Co. had a contract to sell General Tire 55 model 1225 postcure inflators (PCIs). PCIs are $30,000 machines used by General Tire in its manufacturing process. The contract was entered into in 1989, and by April 1990 General Tire had purchased 22 PCIs from Firwood. However, General Tire then closed its Barrie, Michigan, plant. Firwood reminded General Tire that it still had the obligation to purchase the 33 remaining PCIs. General Tire communicated to Firwood that it would not be purchasing the remaining ones.

Firwood then was able, over a period of three years, to sell the remaining PCIs.

Some of the PCIs were sold as units, and others were broken down and sold to buyers who needed parts. Firwood’s sales of the remaining 33 units brought in

$187,513 less than the General Tire contract provided, and Firwood filed suit to collect the resale price difference plus interest. Can Firwood recover? Why or why not? [Firwood Manufacturing Co., Inc. v General Tire, Inc., 96 F3d 163

(6th Cir)]

Chapter 27 Remedies for Breach of Sales Contracts 613 AppendixLO1