The fastest growing coffee shop chain

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Reference no: EM132138687

Brewmasters Baristas, is a company headquartered in Seattle, and is the fastest growing coffee shop chain in the United States. It ordered a shipment of 10,000 bags of various flavors of coffee beans from Grounds Keeper. The contract involved a shipment contract, FOB Place of Destination, and allowed Brewmasters n/30 payment term. Grounds Keeper used FedEx for the shipment. However, the shipment was seized by the FDA in San Francisco due to shipment being infested with a native insect species. The entire shipment was destroyed by the FDA to prevent any spread of the insects. Further, Brewmasters learned that Grounds Keeper has been using pesticides to control the insect infestation and has been working its employees an average of 14 hours per day, 7 days a week. Due to the shipment being seized, Brewmasters had no choice to buy 10,000 bags of coffee beans from another supplier. However, the cost of the new order or "cover" was 25% higher than the contract price with Grounds Keeper. Further, a prior shipment of coffee beans was tainted, causing 100 Brewmaster customers to become violently sick with a form of food poisoning. These customers have filed a class action lawuit against Brewmasters.

Reference no: EM132138687

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