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Auto Rebuilders, Inc. orders original 1995 model parts for a Ford Mustang Cobra from Car Wreckers, Inc. Car Wreckers boxes the parts for shipment but finds another purchaser who is willing to pay more and refuses to ship the parts to Auto. Auto is unable to find the parts for sale elsewhere. What legal remedy should Auto pursue in this situation?

Answer :

Final answer:

Auto Rebuilders, Inc. should pursue a breach of contract claim against Legal Remedy Car Wreckers, Inc. for refusing to ship the agreed-upon parts for a 1995 Ford Mustang Cobra. The damages could include the cost of the parts and any resulting consequential damages.

Explanation:

In the scenario where Auto Rebuilders, Inc. has ordered parts for a 1995 Ford Mustang Cobra from Car Wreckers, Inc., and Car Wreckers has refused to ship the ordered parts after finding another buyer willing to pay more, the best legal remedy for Auto Rebuilders would likely be a breach of contract claim.

When Car Wreckers agreed to sell the parts to Auto and then refused to ship them, they breached their contractual obligation. Auto Rebuilders may pursue damages that put them in the position they would have been in if the contract had been fulfilled, which could include the cost of the parts as well as any consequential damages resulting from their inability to procure replacement parts.

Auto supply businesses often rely on scavengers who pick up old car parts and then sort and store them in warehouses for resale. Companies like Auto Rebuilders require these parts to rebuild and restore vehicles, and a breach of contract can be detrimental to their operations.

In this case, the shortage of available parts due to Auto industry outsourcing and the unique nature of the parts (original 1995 model) enhances the severity of the breach, as the parts are not easily replaceable.

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