Reference no: EM133577409

General Liquors is a wholesale distributor of alcohol products. For more than 35 years, General had operated as a terminable-at-will distributor for Draco Distillers and other manufacturers. In April 2011, when two of its major suppliers withdrew their product lines from General, General faced a critical choice: It could sell the business to one of its competitors, or it could continue in business with scaled- back operations. Not sure of the best course, it entered negotiations with National Wine and Spirits to sell the business, receiving an offer of $2.5 million on July 15. At the same time, having determined that it could remain in business if it retained its remaining major supplier, it approached Draco to seek assurances about its commitment to General. After listening to General's concerns and hearing about the possible sale, Draco told General that it had no intention of taking its line to another distributor. On July 25, with the offer from National about to expire, General contacted Draco again and was again told that it was staying with General. General let the offer from National expire. The next day, Draco informed General that it was withdrawing its product line from General. Concluding that it.