Legal Question in Business Law in California

Re: Material produced in mexico

Did your agreement say the supplier had to produce your product in the United States? If not, it probably had the right to manufacture it wherever it wanted to. The cost savings would then belong to the supplier and you would have no claim to them.

Chances are that your contract only entitles you to specific goods at a specific price. If the supplier delivers them to you at that price, it has not breached the contract. That it found a way to save money on the deal does not entitle you to take that money, or even a share of it.

Re: Material produced in mexico

No, unless the supplier knew that the material had to be produced in the U.S. for one reason or another, As a general matter under commercial law, the material supplied on a contract need only conform to the contract, specification or sample, and anything the supplier can do to hold down its costs while still delivering conforming material would be compliance with the contract and entitle the supplier to full payment of the contract price. The reverse is also true, of course; if the supplier incurs cost over-runs for whatever reason, that's its tough luck and it cannot pass them along absent a contract provision for this.