CORe Exam Dumps | Supplier X is awarded an exclusive contract by a resort chain to supply bulk peanuts for the chain's

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Question 24/151

Supplier X is awarded an exclusive contract by a resort chain to supply bulk peanuts for the chain's snack bars.
A contract is signed with the term to begin in three months and extend for two years. Pricing per shipment is to be determined by the average monthly price for the previous month, less a fixed discount rate. Before any orders have been placed against this contract, the resort chain's supply manager finds that other suppliers are offering deeper discounts. How, If at all, can the resort chain avoid its commitment to Supplier X and save money by buying elsewhere?

A. The resort chain can challenge Supplier X's method of determining domestic pricing.

B. The resort chain can claim that, without a quantity term, there has been no agreement, and therefore no contract.

C. The resort chain cannot avoid its commitment and is obligated to obtain its annual peanut requirements from Supplier X or be liable for damages.

D. The resort chain can inform Supplier X that nuts are to be phased out of the snack bars in order to comply with stricter allergen regulations.

Question 24/151

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