The DiForio Motor Car Company is a small manufacturer of automobiles and sells to three distributors...

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The DiForio Motor Car Company is a small manufacturer ofautomobiles and sells to three distributors in the city of Peoria.The largest distributor, Hugh’s Auras, tells DiForio that it islosing money on its dealership and will quit selling the carsunless DiForio agrees to give it an exclusive contract. DiForiotells the other distributors, whose contracts were renewed fromyear to year, that it will no longer sell them cars at the end ofthe contract year. Smith Autos, one of the other dealers, protests,but DiForio refuses to resupply it. Smith Autos sues DiForio andHugh’s. What is the result? Why?

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Since the contract is between Smith Autos and DiForio Motor Car Company Hughs is not a party to the contract Therefore Smith Autos cannot recover from or restrain Hughs under contract law Now the question is whether Smith Autos has an See Answer

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The DiForio Motor Car Company is a small manufacturer ofautomobiles and sells to three distributors in the city of Peoria.The largest distributor, Hugh’s Auras, tells DiForio that it islosing money on its dealership and will quit selling the carsunless DiForio agrees to give it an exclusive contract. DiForiotells the other distributors, whose contracts were renewed fromyear to year, that it will no longer sell them cars at the end ofthe contract year. Smith Autos, one of the other dealers, protests,but DiForio refuses to resupply it. Smith Autos sues DiForio andHugh’s. What is the result? Why?