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

question 35

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:

Property Rights

Legal rights that delineate the ownership and utilization of resources, including the right to transfer, use, or exclude others from use.

Profit Maximization

The process by which a business seeks to achieve the greatest possible profit with the least possible cost and risk.

Industrial Waste

Waste produced by industrial activities, including chemicals and by-products that can be hazardous to the environment and human health.

Property Rights

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