Weldon Newfield Was Having a Custom Home Built

question 19

Essay

Weldon Newfield was having a custom home built.He had a list of certain materials the contractor was to use in building the $270,000 home.Newfield was in Europe and the contractor could not find "Reading Copper Pipe" - one of the required materials.Since Newfield could not be reached and the contractor was under a time schedule,the decision was made to use another brand of copper pipe.When Newfield returned and learned of the problem,he refused to pay any remaining amounts due on the contract ($235,000).Can Newfield do that?

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Definitions:

Antitrust Laws

Legislation designed to promote fair competition for the benefit of consumers, by preventing monopolies and promoting business practices that encourage competition.

Price-fixing

An illegal agreement among competitors to set prices, limit supply, or engage in other activities to maintain high prices and restrict competition.

Vertical Mergers

Mergers between companies at different stages of production within the same industry, aimed at increasing efficiency or control over the supply chain.

Interlocking Directorates

A situation where the members of a board of directors serve on the boards of multiple corporations, potentially leading to conflicts of interest.