Rockland Industries is a Maryland corporation that manufactures drapery

lining fabrics. Rockland uses approximately 500,000 pounds per year of

antimony oxide, a fire retardant, on its fabrics. Manley-Regan is a Pennsylvania

chemical distribution company. Rockland usually purchased its antimony oxide

from HoltraChem on an “as-needed” basis, where HoltraChem had quoted a

price based on the understanding that Rockland required approximately

500,000 pounds per year of antimony oxide. HoltraChem charged about $0.86

per pound during its last year as Rockland’s supplier.

Due to a serious worldwide crisis in the supply of this chemical in the spring

of 1994, HoltraChem could no longer maintain its existing supply relationship

with Rockland. Rockland, in exploring other suppliers, found that the

antimony oxide market was extremely tight, with rising prices and no known

recovery period.

Rockland contracted with Manley-Regan for delivery of antimony oxide

(114,000 pounds total) at $1.80 per pound. That supply fell through because of

the nature of the market and Rockville contracted with another supplier for

44,092 pounds of antimony oxide at $2.65 per pound and with still another

supplier for 88,184 pounds at $2.54 per pound.

Chapter 26 Obligations and Performance 595

Rockland filed suit seeking as damages the difference between the price of

$1.80 per pound and the various other prices it had paid. Manley-Regan used

UCC § 2-615 as its defense claiming commercial impracticability. Does

Manley-Regan have a good case using this defense? [Rockland Industries, Inc.

v E+E (US) Inc., 991 F Supp 468 (D Md)]

AppendixLO1