BLACK INDUSTRIES, INC. V. BUSH
110 F.Supp. 801 (1953)
NATURE OF THE CASE: Black (P) sought damages, and Bush (D) motioned for summary judgment
in a breach of contract action.
FACTS: Black Industries (P), a drill and machine part manufacturer, was invited by the
Hoover Co. to bid upon certain contracts for anvils, holder primers, and plunger supporters.
P assumed the task of obtaining a supplier of these parts. P reached an agreement with D to
manufacture 1,300,000 anvils at a price of $4.40 per thousand; 750,000 holder primers at
$11.50 per thousand and 700,000 plunger supports at a price of $12 per thousand, all of
which were to be made in accordance with government specifications and in conformity with
certain drawings. P was to service the contract and would be entitled to the difference
between D's quotations and the ultimate price. Hoover agreed to purchase the parts from P at
a rate of $8.10 per thousand anvils, $16 per thousand holder primers and $21.20 per thousand
plunger supports. P's profit on the anvils was 84%, on the holder primers 39%, and on the
plunger supports 77% (note the casebook says 68% but that was calculated improperly
((21.20-12)/12= 77%). D failed to complete the order, and P sued for damages of $14,625. D
also sued for an additional $4,460.95 on lost business with a similar resale contract with P
for Standby Products Company. D moved for summary judgment, alleging among many defenses
that the contracts were void as against public policy because P's profits were passed on to
the government and the public in the form of increased prices.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
Get
free access to the entire content for Mac, PC or Online
for 2-3 days and free samples
of all kinds of products.
for 2-3 days and free samples of all kinds of products.
https://bsmsphd.com
© 2007-2016 Abn Study Partner
No comments:
Post a Comment