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MMLU / A national distributor of windows selected a retailer to sell its windows in a…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A national distributor of windows selected a retailer to sell its windows in a specified geographic area. The parties negotiated a written distribution agreement, which stated that any order for windows placed by the retailer would be binding on the distributor "only when expressly accepted by the distributor." For the next two years, the retailer forwarded orders to the distributor, and the distributor always filled the orders. In the third year, the distributor accused the retailer of overcharging customers to install the distributor's windows. The retailer responded that the distributor had no control over the retailer's installation prices. When the distributor received the retailer's next order for windows, it refused to fill the order. If the retailer sues the distributor for breach of contract, will it be likely to prevail?

choices

  1. No, because the retailer's forwarding of orders to the distributor did not give rise to an obligation on the distributor's part to fill the orders.
  2. No, because the retailer's practice of overcharging customers excused the distributor's refusal to fill the order.
  3. Yes, because the distributor's claim regarding overcharging customers is independent of its obligation to fill the retailer's order.
  4. Yes, because the parties' course of dealing binds the distributor to fill the retailer's order.

subject

professional_law

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Source and history

task_id
93df56c1-8dba-5211-9efc-e613f9443373
task_key
all--test--93df56c1-8dba-5211-9efc-e613f9443373
task_revision_id
1
config / split
all / test

Official source

initial import