Louis Agreed to Provide All the Apples That Cindy's Cider

question 73

Multiple Choice

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired.The rate would then be $3.50 per bushel.A freeze warning required Louis to hire 10 additional overtime workers, raising the cost per bushel to $4.75.Louis wants to get out of his contract.Can he?

• A) No, the parties expected the hardship and provided for it in their contract.
• B) No, there is no hardship.
• C) Yes, the contract is commercially impracticable.
• D) Yes, the freeze is a supervening event.

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Definitions:

High Price

A term describing goods or services offered at a price above the average or market rate.

Dominant Strategy

In game theory, a strategy that is optimal for a player, irrespective of what the opponent does.

High Price

A price level that is considered to be above the average or standard pricing for a product or service in the marketplace.

Maximized Profits

The situation in which a firm or business achieves the highest possible profit level given its production costs and market conditions.