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

Smith (P) distributed paper products. P began selling paper products to Hirsch (D) in 1947, and their business relationship was nearly continuous until 1983. P kept a supply of bags used by D in its warehouse so that when a purchase order was received, it could delivery immediately from inventory. D was liquidated and when P discovered this asked for assurance that the bags in stock would be bought. D stated it would honor all commitments. P then sent D a bill for $65,000 and between October 1983 and May 1984, D purchased $45,000 worth. D refused to take the rest and P sued D. The jury found for P for $27,000. D appealed.

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