Question: For the past two years, ELF has ordered 3000 cases of Dregs Brew, a popular and inexpensive beer, for weekly delivery to sell in its

For the past two years, ELF has ordered 3000 cases of Dregs Brew, a popular and inexpensive beer, for weekly delivery to sell in its various stores. Delivery is always made on Tuesday from the Dregs bottler in the New England region to the ELF distribution center. ELF processes payment for each shipment about 30 days later.

When a global pandemic hits, requiring stay at home orders but allowing ELF stores to continue operating as essential businesses, demand for Dregs increases. The VP of ELF supply chain, Grace Liu, sends an email to her contact at Dregs, attaching a purchase order that doubles the standard weekly order. Dregs send back a confirmation, Got it! Thanks! Boilerplate language at the bottom of the email says ALL PAYMENTS DUE 15 DAYS AFTER DELIVERY.

Unfortunately, the President starts referring to the pandemic as the Dregs Virus because the first patients to test positive had been at a Dregs corporate retreat in Fort Lauderdale when they first succumbed. Now, the public doesnt want Dregs Brew. Grace sends an email to Dregs and says, Stop sending beer. I cant sell it. ELF revenues are down significantly, even without a surplus of unsaleable beer.

Is there a contract? If so, how was it created and what are its terms? What law applies here?

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