Bob Runs a Factory That Makes Ladies' Clothing

question 94

Essay

Bob runs a factory that makes ladies' clothing.Bob needs a certain type of silk sold by Alice.Bob calls Alice and tells her that he needs 1,000 yards of silk.Alice tells Bob that she cannot guarantee anything but that she will do her best.Alice tells Bob that she will sell him the silk for a 10% markup on what she has to pay.Bob says that is fine.Later,Bob is having financial problems and decides he doesn't want the silk.Unfortunately,Alice calls the next day and tells Bob that she has located 900 yards of silk and that she would like payment.Bob wants out of the deal.He says that there was a lack of consideration and that he never even knew how much he would have to pay.What would a judge likely rule?

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Definitions:

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services.

Political Power

The authority or influence that individuals or groups hold within a political structure.

Sherman Act

An antitrust federal statute passed in 1890 which prohibits certain business activities that reduce competition in the marketplace, including monopolies.

Felony

A serious crime, such as murder, rape, or robbery, that is punishable by imprisonment for more than one year or death.