This section contains the nature of the case and procedural background.

Eastern Dental Corp. (P) was incorporated to be a distributor of dental products used in orthodontics. Masel (D) was a manufacturer distributor of dental products and instruments. D sold facebows, elastics, lingual buttons, cleats, and metal bases to P. D manufactured products for P that were labeled as P's. During a four-year relationship, the parties did business on the basis of invoices and statements; there was no written agreement. In 1976, P got complaints about the quality of the facebows. In 1977, P began to manufacture elastics, a product it had purchased from D. D then discussed a possible takeover of P but no written offer was ever made. In March 1978, P submitted orders to D that was not filled and eventually D wrote P informing them that he no longer cared for their business. P experienced great difficulty in finding alternative sources and could not find a source for facebows or metal bases. P did find a source for buttons and cleats, but the price was too prohibitive. P sued D. D moved for a summary judgment on the statute of frauds.

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