Baked Goods Company agrees to supply Comida Café with all the corn chips that it re?quires for a year. A sudden demand for ethanol results in a shortage of corn, and the price rises sharply. Baked Goods asks Comida to pay a higher price for the chips. This request is
A) invalid as an attempt at extortion or the so-called holdup game.
B) invalid under the preexisting duty rule.
C) valid as a risk ordinarily assumed in business.
D) valid due to the unforeseen difficulty of the sudden price increase.
Correct Answer:
Verified
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