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MMLU / A watch manufacturer has an agreement with a watch wholesaler in which the…

Problem

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question

A watch manufacturer has an agreement with a watch wholesaler in which the wholesaler agrees to purchase all of the watches made each month by the manufacturer, within an estimated number of 1000 to 1500 watches per month. Although the agreement worked well at 1,000 watches per month, the manufacturer expanded its plant capacity and produced 2500 watches per month. The wholesaler could no longer pay for that volume of watches. The manufacturer sued the wholesaler to compel it to buy its full output each month as required by the contract. will the court likely grant the manufacturer's request?

choices

  1. No, because the expansion is a disproportionate increase in product that exceeds contractual estimates and cannot be handled by the buyer.
  2. Yes, because doubling the size of the output contract is not unreasonable and is only 500 more the top estimated limit.
  3. Yes, a doubling of the output contract in these circumstances meets a good faith standard and is reasonable.
  4. No, because a change of more than 10% is considered to be unreasonable and the basis for a breach of contract.

subject

professional_law

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Source and history

task_id
5be9c583-3fb9-5948-98b1-d1bb47b7d90b
task_key
all--test--5be9c583-3fb9-5948-98b1-d1bb47b7d90b
task_revision_id
1
config / split
all / test

Official source

initial import