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Use the follow data for the next two questions: Walton's Seafood Supply Company had a two-year contract with the Eastside Seafood Store to supply the...
Use the follow data for the next two questions:Walton’s Seafood Supply Company had a two-year contract with the Eastside Seafood Store to supply the retail store with a variety of fresh fish. At the beginning of the second year of the contract, Walton’s began having trouble meeting the needs of the Eastside Seafood Store. As a result, in order to keep its customers satisfied, Eastside began driving a refrigerated truck 50 miles to another supplier two times a week so the store could meet customer demands. The cost of making the twice a week “seafood run” was $300 per week in incremental transportation costs. Additionally, Eastside contended that they had to pay on average 15 percent more for the fish at the other supplier than was provided for in the original contract. Eastside Seafood Store averaged $4,000 a week in purchases from the other supplier. Eastside filed a law suit against Walton’s Seafood Supply for breach of contract and the court ruled for the plaintiff in the case.7.
