THE RANDOLPH SHOE AND LEATHER COMPANY.

The article presents the case study of the Randolph Shoe and Leather Company, which, responding to a forecast of decline in the prices of shoe and leather, instructed its sales force to only accept orders for immediate requirements. In spite of the instructions, retailers were buoyed by the optimism of their customers and disregarded the directive, only to encounter a business collapse. The result was a cancellation of retail orders and the return of shoes by retailers. Executives found the actions of the retailers unjust and urged the company president to enforce the sales contracts. The company president decided to pursue legal action against the three most flagrant offenders in an effort to show that these contracts were enforceable. The article debates the wisdom of that decision.