Budget Wrench Co. sold its wrenches to a variety of retail outlets at $1 each. Stony Hardware purchased a large quantity of the wrenches and used them over a six-month period as a special advertised sale item, priced at 25 cents each. Budget Wrench Co. requested Stony Hardware to stop selling its wrenches as a "special" sale item, but Stony Hardware refused to do so. Stony Hardware was selling the wrenches as a "loss leader."

Question

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Once Stony Hardware purchased the wrenches, they had the right to set their own resale price, including selling them as a "loss leader" despite the manufacturer's request.