Firwood manufacturing Co had a contract to sell General Tire 55 Model 1225 postcure inflators. (PCIs) PCIs
are $30,000 machines used by General Tire in its manugacturing process. The contract was entered into in
1989 and by April 1990 General Tire had purchased 22 PCIs from Firwood. However, General Tire then Closed
its Barrie Michigan Plant. Firwood reminded General Tire that it still had the obligation to purchase the 33
remaining units. General Tire Communicated to Firwood that it would not be purchasing the remaining ones.
Firwood then was able over a period of three years to sell the rmaining PCIs – some as units – and others
broken down and sold for their parts. The sale of the remaining units by Firwood brought in $187, 513 less than
the General Tire Contracted provided and Firwood filed suit to collect the difference plus interest. Can Firwood
recover? Why or why not? What rules of law apply? Use IRAC.
Textbook: Twomey & Jennings, Anderson’s Business Law and The Legal Environment (23rd Ed. 2017), ISBN:
978-1-305-57508-0.
Chapters 40 (stop at 40-3b), 41 (not 41-4), 42, 43, 44, and 45.
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