Yes they are, this is covered by contract law.
Yeah. And such law states that the contract can be dissolved in such cases (not sure if that is the correct term..) and petamine received a part of their money back. IANAL, but business-to-business sales generally assume that both sides know what they're doing and lacks many of the protection stuff that exists on the consumer side. If compensation is not in the contract, the chance of getting any is small.