1. How should the new manager have acted when he saw that his predecessor had entered a bad contract?
2. What would have been a proper remedy for Sons of Thunder?

Borden made clam chowder using clams purchased from commercial fishing boats, and in an effort to cut costs, promised to buy a minimum amount of clams from a fishing captain if he were to purchase larger boats capable of holding “Shuck-at-Sea” equipment. Based on this promise, the captain took out loans and complied by equipping the boats with the necessary equipment. Soon thereafter, Borden came under new management who concluded that the “Shuck-at-sea” project was not profitable, and dramatically reduced its buying from the captain’s boat. As a result, he could no longer pay off his loans used to purchase the larger boats.

  • CreatedNovember 06, 2014
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