Harvey sold a quantity of his hand-carved birdhouses to Keaton's Ltd., stipulating in the contract that they were not be to resold for less than a stated price, so that Keaton's would not cause him to lose business when he sold them direct at craft fairs and shows. Keaton's found they could not sell them, so they resold them to Tom Terrific, a discounter, for the minimum price stipulated in the Harvey-Keaton contract. Tom Terrific then sold them at an even lower price as a loss leader since they had just become very popular.
Discuss whether or not Harvey, whose own sales are now slumping, can sue Tom Terrific.

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The Answer of Harvey sold a quantity of his hand-carved birdhouses to Keaton's Ltd., stipulating in the contract that they were not be to resold for less than a stated price, so that Keaton's would not cause him to lose business when he sold them direct at craft fairs and shows. Keaton's found they could not sell them, so they resold them to Tom Terrific, a discounter, for the minimum price stipulated in the Harvey-Keaton contract. Tom Terrific then sold them at an even lower price as a loss leader since they had just become very popular.
Discuss whether or not Harvey, whose own sales are now slumping, can sue Tom Terrific.

Harvey Sold a Quantity of His Hand-Carved Birdhouses to Keaton's