WBU BUAD3318 CHAPTER 14 ESSAY

Complete Boring Corporation ships its only pump to Drills & Bits, Inc., the manufacturer, for repair. Complete Boring hires Everywhere Shipping, Inc., to take the pump to Drills & Bits and to return it to Complete Boring as soon as the repair is complete. Complete Boring is forced to sus­pend operations without a pump, but Everywhere Shipping does not know this. Complete Boring expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day, Complete Boring rents a pump at a cost of $100 per day. Everywhere Shipping delays five more days before returning the pump. Complete Boring files a suit against Everywhere Shipping, asking for compensatory, consequential, and punitive damages. Will Complete Boring recover?

Gretchen buys a tractor from Haulers Equipment Company, paying $1,000 down and agreeing to pay off the balance in thirty-six monthly payments of $200 each. The terms of the agreement call for Gretchen to make a payment on or before the first of each month, beginning March 1. During the first six months, Haulers receives a $200 payment before the first of each month. Starting in September, however, and continuing for the subsequent five months, Gretchen’s payment is never made until the fifth of the month. Haulers accepts and cashes the payment check each time. Before the next payment is due, Haulers decides that it is no longer willing to accept late payments. Can Haulers sue Gretchen immediately for breach? Can Gretchen continue to make late payments without liability? Explain.