Farrar Products Co

Essay

Farrar Products Co. is a packer and shipper of produce. Farrar ordered 20,000 produce boxes from Wilson Paper Co. According to the contract, the boxes were each to hold between 20 and 30 pounds of produce for shipping. When the boxes arrived at Farrar's packing plant, Farrar discovered that the boxes were of a lesser quality and were only capable of holding 10 pounds of produce each. Because it had a backlog of produce to ship, Farrar used 8,000 of the boxes immediately, packing twice as many boxes as it ordinarily would for that amount of produce to accommodate the lesser strength of the tendered boxes. Farrar also immediately went out and purchased 16,000 boxes from another supplier, at a cost of $.10 a box more than Farrar had contracted to pay Wilson.