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RST Bus Corporation contracts with Supplier X to buy 5,000 gallons of diesel fuel per...

RST Bus Corporation contracts with Supplier X to buy 5,000 gallons of diesel fuel per month over the course of a year. After the first delivery is used in RST's fleet of tour buses, several of the buses stall on the highway. An inspection by RST's mechanics determines that the damage was caused by contaminated fuel. RST's supply manager notifies Supplier X that no further deliveries will be accepted, and that the supplier is expected to pay the cost of the repairs to the buses. In response, Supplier X cites its contract clause disclaiming warranties and liability, and its e-mail acceptance of RST's purchase order, including a statement that Supplier X's terms and conditions were applicable and available upon request. Supplier X contends that RST must accept all scheduled deliveries.

In this situation, which of the following is the BEST course of action for RST's supply manager to take?

A.

Contact RST's legal counsel, communicate the facts, and ask for their assistance in negotiating a solution to the problem

B.

Bill Supplier X for repairs to the buses, no longer accept deliveries, and find a new supplier of diesel fuel

C.

Refer the matter to the Department of Transportation for review and possible regulatory action against Supplier X

D.

Absorb the cost of repairs, accept all of the diesel fuel, and contract with a refinery to reprocess the contaminated fuel at Supplier X's expense

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