Solved

Baked Goods Company Agrees to Supply Comida Café with All

Question 32

Multiple Choice

Baked Goods Company agrees to supply Comida Café with all the corn chips that it re?quires for a year. A sudden demand for ethanol results in a shortage of corn, and the price rises sharply. Baked Goods asks Comida to pay a higher price for the chips. This request is


A) invalid as an attempt at extortion or the so-called holdup game.
B) invalid under the preexisting duty rule.
C) valid as a risk ordinarily assumed in business.
D) valid due to the unforeseen difficulty of the sudden price increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions