cam someone explain what laws or ethical issues are wrong with this? i need to sort out the problem and back it up with laws or statues.

Al has been working for a while on developing a relationship with Auto World, a Detroit company. On January 10, Auto World calls Al and tells him that they are 1 willing to enter into a contract for 1,000,000 widgets a year for three years if he will reduce the $1.50 price to $1.00 a widget. Thinking of his commission and knowing that the deal will be lost at anything over $1.00, Al accepts their offer and signs the contract on behalf of WWW with the hope that he can persuade David, John and Josh that this is "do"able. The first shipment is to be on February 1. There is a provision in the contract that says that the contract is assignable by either party. A week after entering into the contract, Auto World assigns the contract to Best Cars. Before Al has a chance to tell his bosses about the contract with Auto World, Best Cars contacts Josh and informs him that they are assignees under the contract and expect delivery by March 1 at $1.00 a widget. Josh is furious at Al and tells Best Cars that they will not deliver the widgets to them at that price. Josh fires Al Best Cars sues. Al sues WWW and Josh