Answer Happy

75 pts Question 1 a Mr. B's, Inc. is a renowned hook-to-fork seafood restaurant that opened six months ago in a prime Banker's Hill location with panoramic blue water views. It has become well known for the quality of its food and service. It has several dishes featuring mahi-mahi that are wildly popular with its guests. a Mr. B's entered into a valid written contract with Pacific Fish Runners (PFR) under which PFR agreed to supply Mr. B's with 250 pounds per week of fresh Pacific mahi-mahi at $4 per pound for the next year. Three months after the making of the contract, a large, widely publicized oil spill occurred in Pacific coast waters. The spill greatly reduced the catch of mahi-mahi. Mahi-mahi began selling on the open market for at least $5 per pound. PFR then told Mr. B's that it would supply mahi-mahi only at a price of $6 per pound. Mr. B's refused to pay more than the contract price. In fact, PFR has found a new customer willing to pay $6 per pound, and it is selling its entire supply (about 450 pounds of mahi-mahi per week) to that customer. Mr. B's, faced with the prospect of having to obtain mahi-mahi for its daily restaurant menu and also for special events that it caters, found a supplier willing to meet about one half of Mr. B's weekly requirement for mahi-mahi at $5 per pound. With further effort, Mr. B's might have filled a portion of the remaining weekly requirement for mahi-mahi at $6 per pound, but was uncertain to what extent mahi-mahi would continue to be obtainable and how high the market price might go. Mr. B's decided instead to reduce its menu offerings of mahi-mahi and to cancel several catering contracts. Within a month after reducing its menu offerings of mahi-mahi, Mr. B's experienced a 25% decline in its restaurant business from the previous month. It also had a 75% decline in new bookings for catering jobs. Mr. B's still has the immediate and long-term problem of how to obtain a reliable source of mahi-mahi, and wants to sue PFR. Assume a valid contract has been formed.
Essay Questions (25 points each): 1. What legal rights and remedies does Mr. B's have against PFR? 2. What damages, if any, might Mr. B's recover from PFR? 3. What defenses, if any, should PFR assert?