Glenn Distributors sells closeout merchandise to discount stores. The merchandise consists of goods that have been changed or discontinued, so large quantities can be bought at bargain prices. Carlisle Plastics makes “Ruffies” name-brand trash bags. Glenn contracted to buy $990,000 worth of Ruffies bags from Carlisle, but Carlisle shipped Glenn only $736,000 worth of the bags and sold the others to a different buyer. Glenn claimed it was unable to cover because the only name-brand bag for that price was Ruffies and only Carlisle made Ruffies. Unable to cover, Glenn sued for $230,000 in lost profits.

CASE QUESTIONS

1. Did Glenn make reasonable efforts to cover?

2. Should Glenn have to cover the lost profits by buying products other than trash bags? Why or why not?