Reference: “Cutie Dolls.” Toymaker CZY came out with a doll called the Cutie Doll.

Reference: “Cutie Dolls.” Toymaker CZY came out with a doll called the Cutie Doll. CZY initially had trouble selling the doll to retailers even after offering retailers a contract by which they could buy all the dolls they needed for $10 each. Slick Eddie, however, who had a retail toy store, signed the agreement whereby he could buy all the dolls he needed for $10. Eddie told his employees that it was a good deal because he could mark-up the dolls to $15 and probably sell 100 or so of them. Slick Eddie’s toy store, however, did very little business because he was so sleazy. Parents wanted to keep kids out, and he was struggling to sell Cutie Dolls or anything else. Surprisingly, after a few months, Cutie Doll was a surprise hit, and every child wanted one. Slick Eddie, however, did not see much demand in his store because, regardless of whether he had Cutie Dolls, parents disliked him. When demand grew, CZY raised the price charged to retailers who had not signed a contract to $40 per doll, which initially could be purchased for $10 each. Slick Eddie decided to purchase Cutie Dolls for $10 from CZY and then resell them for $35 to a retailer, Fun Days, who did not have a contract with CZY to purchase the dolls for $10. His contract with Fun Days required that he gift wrap the dolls and that he provide Fun Days with all the gift-wrapped dolls he could produce. Eddie then ordered 10,000 Cutie Dolls from CZY. When representatives of CZY figured out what was happening based on a tip from a disgruntled employee of Eddie, sales of Cutie Dolls to Eddie were stopped. What type of contract did Slick Eddie have with CZY?

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