Charles Brooks began working as an independent supplier for Georgia-Pacific, LLC, when the paper products manufacturer acquired

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Charles Brooks began working as an independent supplier for Georgia-Pacific, LLC, when the paper products manufacturer acquired a mill in Crossett, Arkansas. Brooks soon organized Charles Brooks Co. in corporate form. Each of the parties’ contracts provided, “there is absolutely no guarantee as to the amount of work to be performed.” Charles Brooks Co. borrowed funds to buy new equipment. When Georgia-Pacific reduced the quantity of timber that it bought from the supplier, the firm was unable to pay its loans. In 2002, some of the new equipment was returned to the seller. The rest was sold, but the proceeds were not enough to eliminate the debt. The same year, the Arkansas secretary of state revoked Charles Brooks Co.’s corporate status for nonpayment of franchise taxes. In 2006, Charles Brooks Co. filed a suit in a federal district court against Georgia-Pacific, alleging breach of contract. Can the plaintiff maintain this suit? Explain.

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Business Law Today The Essentials

ISBN: 978-0324786156

9th Edition

Authors: Roger LeRoy Miller, Gaylord A. Jentz

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