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Contracts Keyed to Ayres
Washington State Hop Producers, Inc. v. Goschie Farms, Inc.
Citation:
112 Wash.2d 694.Facts
From 1965 to 1985, the USDA required hop growers to obtain federal allotments in order to market their hops. This was called “hop base.” Growers could transfer excess allotments to other growers. Overtime, hop base became scarce and developed a secondary market for trading. Since the system restricted entry, the USDA considered making various efforts to change it, but by June 1985 substantial changes in the marketing order were not expected. The plaintiff was organized to acquire, lease and sell federal hop base. In 1985, the plaintiff mailed out invitations to bid on two pools of hop base for sale. On June 21 1985, the plaintiff mailed out notices of awards to bids in the $0.50-$0.76 per pound range. On June 27, 1985, the USDA terminated the marketing order effective December 31, 1985. Defendant refused to perform on the contract. Plaintiff was able to sell 50% of one of the pools for price of $0.7 per pound compared with earlier successful bids of $0.6 per pound. Plaintiff brought an action to enforce the contracts.
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