Hasbro used to manufacture a toy called Wonder World Aquarium. The toy included a powder that, when


Hasbro used to manufacture a toy called “Wonder World Aquarium.” The toy included a powder that, when mixed with water, formed a gel that filled a plastic aquarium. Children could then place plastic fish in the aquarium and create underwater scenes. Cloud Corporation supplied the powder to Hasbro. The toy sold poorly, and Hasbro’s need for the powder diminished.
The two companies discussed changing the powder’s formula. Cloud believed the conversation amounted to an indication that Hasbro would continue to buy powder, so it produced large quantities. Although it did not receive an order from Hasbro, Cloud sent an order acknowledgment for 9.5 million packets to Hasbro. Hasbro made no objection to it.
Did the order acknowledgment create an enforceable agreement? What specific facts determine your answer?

A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Business Law and the Legal Environment

ISBN: 978-1111530600

6th Edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Dean A. Bredeson

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