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The leading case on the issue of good faith in the modification of requirements contracts is Empire Gas Corp. v. American Bakeries, 840 F.2d 1333 (7th Cir. 1988). The bakery defendant contracted with Empire Gas to buy converters which would allow its fleet of delivery trucks to run on propane. Days after the contract was signed, the bakery decided not to convert its trucks.

The Seventh Circuit affirmed the decision for the plaintiff on the issue of bad faith, holding that it had met its burden by presenting evidence that the buyer kept its trucks and 'the financial wherewithal to go through ...