Question 4 – 8 Points Mendota Coffee Roasters, LLC roasts co…
Question 4 – 8 Points Mendota Coffee Roasters, LLC roasts coffee for cafés across Wisconsin and regularly buys green (unroasted) coffee beans from importers. Mendota sent a signed purchase order to Kickapoo Bean Importers, Inc., a green coffee importer, for 2,000 pounds of green coffee beans at $4.10 per pound, with payment “net 30 days after delivery.” The purchase order was for a single shipment and said nothing about future purchases. Kickapoo responded with its standard acknowledgment form: “We accept your order. Payment is due on delivery. BY PLACING THIS ORDER, BUYER AGREES TO PURCHASE A MINIMUM OF 2,000 POUNDS OF GREEN COFFEE PER MONTH FROM SELLER, AT SELLER’S THEN-CURRENT PRICES, FOR THE NEXT 24 MONTHS.” Mendota did not respond. Kickapoo shipped the beans, and Mendota accepted them. The next month, Mendota bought its beans from a different importer. Kickapoo now demands that Mendota buy 2,000 pounds per month for the next 24 months, nearly $200,000 of coffee at current prices, and threatens to sue for breach. Mendota also insists that it has 30 days to pay for the first shipment. REQUIRED – 8 Points: (a) (3 Points) Was a contract formed? (b) (3 Points) Is the 24-month minimum purchase requirement part of the contract? (c) (2 Points) When must Mendota pay for the first shipment?
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