Under a written agreement Superpastries, Inc., promised to sell its entire output of baked buns at a specified unit price to Bonnie's Buns, Inc., a retailer, for one year. Bonnie's Buns promised not to sell any other supplier's baked buns. For this question only, assume the following facts. The parties' contract included a provision for termination by either party at any time upon reasonable notice. After six months of performance on both sides, Superpastries, claiming that its old bun-baker had become uneconomical and that it could not afford a new one, dismantled the bun-baker and began using the space for making dog biscuits. Superpastries' output of baked buns having ceased, Bonnie's Buns sued for breach of contract. Bonnie's Buns moves for summary judgment on liability, and Superpastries moves for summary judgment of dismissal. Which of the following should the court rule? 
Summary judgment for Bonnie's Buns, because as a matter of law Superpastries could not discontinue production of baked buns merely because it was losing money on that product.  Summary judgment for Superpastries, because its cessation of baked-bun production and Bonnie's Buns' awareness thereof amounted as a matter of law to valid notice of termination as permitted by the contract.  Both motions denied, because there are triable issues of fact as to whether Superpastries gave reasonable notice of termination or whether its losses from continued production of baked buns were sufficiently substantial to justify cessation of production.  Both motions denied: Superpastries may legally cease production of baked buns, but under the circumstances it must share with Bonnie's Buns its profits from the manufacture of dog biscuits until the end of the first year. 
Question: Under a written agreement Superpastries, Inc., promised to sell its entire output of baked buns at a specified unit price to Bonnie's Buns, Inc., a retailer, for one year. Bonnie's Buns promised not to sell any other supplier's baked buns. For this question only, assume the following facts. The parties' contract included a provision for termination by either party at any time upon reasonable notice. After six months of performance on both sides, Superpastries, claiming that its old bun-baker had become uneconomical and that it could not afford a new one, dismantled the bun-baker and began using the space for making dog biscuits. Superpastries' output of baked buns having ceased, Bonnie's Buns sued for breach of contract. Bonnie's Buns moves for summary judgment on liability, and Superpastries moves for summary judgment of dismissal. Which of the following should the court rule? 
A. Summary judgment for Bonnie's Buns, because as a matter of law Superpastries could not discontinue production of baked buns merely because it was losing money on that product. 
B. Summary judgment for Superpastries, because its cessation of baked-bun production and Bonnie's Buns' awareness thereof amounted as a matter of law to valid notice of termination as permitted by the contract. 
C. Both motions denied, because there are triable issues of fact as to whether Superpastries gave reasonable notice of termination or whether its losses from continued production of baked buns were sufficiently substantial to justify cessation of production. 
D. Both motions denied: Superpastries may legally cease production of baked buns, but under the circumstances it must share with Bonnie's Buns its profits from the manufacture of dog biscuits until the end of the first year. 
Answer: