Wilbur sells exotic and tropical fruit to caterers in the greater metropolitan area. Most of the caterers' customers are very high end individuals
who are willing to pay high amounts for Wilbur's fruit. Wilbur gets his fruit from Pacific Gem Company, headquartered in San Francisco. Pacific
Gem has been Wilbur's supplier for over ten years and knows the nature of Wilbur's business well and in detail.
Wilbur has contracted with Glossier Perfumery, a boutique firm that sells perfumes to high end customers. Each spring, Glossier hosts a
reception for its clients, many of whom are Chinese and Japanese. The centerpiece of the reception is the dragon fruit display with fresh
lychees, fruits that are a favorite of the clients. Glossier contracts with Wilbur to provide $22,000 of fresh dragon fruit and lychees.
Wilbur contracts with Pacific Gem for both the dragon fruit and lychees. Pacific Gem guarantees timely delivery. When the fruit arrives for
Wilbur to inspect and then process and ship to Glossier, Wilbur discovers that the refrigeration in the fruit carriers has failed and the fruit are
now overripe. While they are not exactly unusable, they are not of the quality that Glossier has come to expect. Wilbur rejects the fruit but
cannot send it back as they will completely spoil. So, Wilbur sells the fruit to local restaurants for immediate use.
Pacific Gem is unable to replace the fruit. Glossier sues Wilbur for breach of contract and Wilbur sues Pacific Gem.
Wilbur is able to replace the dragon fruit and lychees from another supplier but at a cost of $35,000 which Wilbur passes on to Glossier.
Glossier accepts the fruit but refuses to pay the extra $13,000. Wilbur claims that Glossier is liable for that extra money since the issues
with the original fruit shipment was not Wilbur's fault.
Wilbur sues Pacific Gem for the difference of $13,000 that Glossier rightfully refused to pay. Wilbur claims that under the doctrine of
"cover," Pacific Gem owes Wilbur the difference in providing the goods to Glossier.
Assume that Pacific Gem did ship conforming fruit to Wilbur, but Wilbur has gotten a better offer for the fruit than the contracted-for price
with Glossier. Wilbur refuses to deliver. Glossier claims it can require Wilbur to deliver the fruit and not simply sue for damages.
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