Amy оwns а cаtering business (Amy Cаters, LLC), and caters meals fоr all types and sizes оf events. Amy, with the help of employees, completes most of the meal preparation herself, purchasing food from institutional or specialty suppliers as needed, but Amy will occasionally contract with specialty suppliers when necessary, such as decorative cakes and desserts.Brenda hires Amy to cater Brenda’s wedding dinner. Including guests, 1,000 people will attend the meal. Of particular interest to Brenda is the individual, custom dessert cakes to be made for each guest. When reserving for the meal, invited guests were asked to choose one of three flavors of cake for dessert: French vanilla garnished with vanilla beans, Godiva liquor-infused chocolate cake, or a floral liquor-infused cake served with edible flower petals. Each cake would cost $15 each. Based on reservations, Brenda orders 450 vanilla cakes, 350 chocolate cakes, and 200 floral cakes for her dinner.Amy contracts with Cherie, a specialty bakery, who agrees to prepare the 1,000 cakes at $10 each. In a written purchase order, the cakes are to be express shipped “FOB Amy Caters” one day prior to the wedding, with payment for the cakes to be made within 20 days of delivery.Cherie bakes, decorates, and packages the cakes for shipping. Cherie hires Tim to transport the cakes to Amy. For ease of packing and transport, Tim uses one delivery van for the floral cakes. Another small truck is packed with the remaining cakes and dispatched shortly thereafter. The van with the floral cakes arrives at Amy’s place of business without incident; however, the small truck and its cakes are lost when a sudden tire blow-out topples the truck off the interstate. In the short time remaining prior to the wedding dinner and with much effort, Amy locates and purchases substitute chocolate and vanilla cakes from a local bakery at a price of $13 each. At the wedding reception, Brenda’s guests who eat the floral cakes become violently ill. The petals were later identified as non-edible and the cause of the guests’ illness.Cherie demands to be paid $10,000. Amy refuses to pay. Amy and Cherie file suit against each other for damages associated with the cakes. What legal rights/claims and damages does Amy have against Cherie? What legal rights/claims and damages does Cherie have against Amy? Showing your work, calculate the damages (if any) recoverable by Amy and Cherie.
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