The production manager in your company called you on Friday to tell you that he is low on the main ingredient needed to manufacture the XYZ product. He further stated that when he called the supplier (with whom he has a contract) to find out what had happened to the shipment that was promised the day before, he told him that he would not be able to provide it. The reason given by the supplier was that the plant in which the material ordered was made would be out of operation for another week due to the tornado that had passed through his town that week and damaged his plant. The production manager is very angry and wants you to penalize this supplier for missing his promised delivery date.
a) How would you handle this situation?
b) Which clause in the contract, if present, would offer the supplier protection from liability?
c) Give a brief explanation of this clause?