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EMPIRE GAS CORP. v. AMERICAN BAKERIES CO.

No. 87-1411.

840 F.2d 1333 (1988)

EMPIRE GAS CORPORATION, Plaintiff-Appellee, v. AMERICAN BAKERIES COMPANY, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided February 16, 1988.

Petition for Rehearing Dismissed May 12, 1988.

Attorney(s) appearing for the Case

Bernard J. Nussbaum, Sonnenschein, Carlin, Nath & Rosenthal, Chicago, Ill., for defendant-appellant.

Thomas H. Davis, Morris, Larson, King & Stamper, Kansas City, Mo., for plaintiff-appellee.

Before POSNER, FLAUM and KANNE, Circuit Judges.

POSNER, Circuit Judge.

This appeal in a diversity contract case presents a fundamental question — surprisingly little discussed by either courts or commentators — in the law of requirements contracts. Is such a contract essentially a buyer's option, entitling him to purchase all he needs of the good in question on the terms set forth in the contract, but leaving him free to purchase none if he wishes provided...

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