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Contracts Keyed to Calamari
Wiseco, Inc. v. Johnson Controls, Inc.
Citation:United States Court of Appeals, Sixth Circuit, 2005. Unpublished Opinion. 2005 WL 2931896, 59 UCC Rep.Serv.2d 884.
Plaintiff is a manufacturer of custom metal products. They entered into a contract with the defendant, a supplier of automobile parts, to supply the defendant with up to 4000 of a metal part called ‘Part 648F’ per day, which was used in headrests. The contract was a requirements contract, and the defendant represented that Part 648F would be used for 4 years, which the plaintiff assumed to be the contract duration. After the plaintiff had begun production, the defendant decided it would not use Part 648F in its headrests anymore, and reduced orders to the plaintiff as it phased out models that used Part 648F. Plaintiff sued on the grounds that the defendant was reducing their consideration on the contract in bad faith.
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