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:

Short-Term Profitability

The ability of a company to generate profits over a brief period, typically less than one year.

Interlocking Directorates

Interlocking directorates occur when members of the board of directors for one company serve on the boards of directors for other companies, potentially leading to conflicts of interest and reduced competition.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at increasing competition by prohibiting certain actions that lead to anti-competitiveness.

Sherman Act

A foundational antitrust law in the United States designed to prevent monopolistic practices and promote competition.