Question: Slimline and Distributor signed a contract providing that Distributor would use reasonable efforts to promote and sell Slimline s diet drink. Slimline was already being
Slimline and Distributor signed a contract providing that Distributor would use reasonable efforts to promote and sell Slimlines diet drink. Slimline was already being sold in Warehouse Club. After the contract was signed, Distributor stopped conducting instore demos of Slimline. It did not repackage the product as Slimline and Warehouse had requested. Sales of Slimline continued to increase during the term of the contract. Slimline sued Distributor, alleging a violation of the agreement. Who should win?
Reasonable in the contract means
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Distributors best defense is
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Did Distributor act in good faith?
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Distributor
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successfully defend itself based on the fact that the Slimline sales increased.
In order to make it easier to defend itself against this type of claim, Distributor could have written in the contract
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