Black Industries

Black Industries - Bush’s defense was that the profits of...

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Black Industries, Inc. v. Bush US District Ct N.J. (1953) Forman, Chief J FACTS: Black Indus. Agreed to supply certain items to third parties for ultimate delivery to the US Gov. Black Indus. contracted w/ Bush to manufacture these parts. Black Indus. was to profit by the difference in the purchase price from Bush and the sale price to the third parties. This profit margin ranged from 40-85%. When Bush did not deliver the products, Black Indus. sued for lost profits of $19K.
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Unformatted text preview: Bush’s defense was that the profits of Black Indus. were excessive during the time of the Korean war and therefore violated public policy. ISSUE: Whether a contract is void as public policy if one party’s profits are excessive. HELD: No RULE: In order to declare a contract, entered by the contract freely and without evidence of fraud, void as against public policy, the contract must be invalid on the basis of recognized legal principals....
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