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Kulak Farms, LLC in Florida grows and sells citrus fruits to grocers across the world. Corleone Family Grocers in New York contracts with Kulak Farms to buy 100 tons of oranges. The contract includes the terms "FAS Big Brad's Boat." Kulak Farms delivers the oranges to the harbor in Tampa for loading onto Big Brad's Boat. A hurricane approaches, but the captain, Little Timmy, has Big Brad's Boat sail anyway. The storm sinks Big Brad's Boat. Everyone survives but the cargo is lost. Kulak Farms sues Corleone Family Grocers after Corleone Family Grocers refuses to pay. How will the court rule?

Operation Management, Management Studies

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