Abbott Industries is a well-known supplier of pharmaceuticals worldwide. Founded by Dr. Wallace Abbott, the company was incorporated in 1900 after he had been developing and making pharmaceuticals since 1888. Headquartered in the greater Chicago area, Abbott had sales of nearly \($30\) billion in 2008 and a research and development budget of nearly \($8\) billion. As a supplier of pharmaceuticals, Abbott contracted with Altana, Inc., later to be purchased by NYCOMED, Inc. The contract required that Abbott provide Altana with the antibiotic erythromycin powder for Altana to use in the manufacture of ophthalmic ointment. Unfortunately, one of the shipment batches of erythromycin was bad. As a result, 1.2 million tubes of the manufactured ointment were unusable.
Abbott actually contacted Altana and admitted to the faulty batch of erythromycin powder. Altana was forced to recall from the market and destroy the 1.2 million tubes and spend a considerable amount of money in employee overtime payments to replace the destroyed tubes. Through a truly herculean effort, Altana was able to satisfy all of its outstanding contracts with buyers of the ophthalmic ointment.1 The questions that this case raises pertain to the extent of Abbott’s liability to Altana. Liability is not an issue, but the extent of the remedies is. Is Abbott responsible for 

a. The cost of the recall?
b. The cost of the destruction of the 1.2 million tubes?
c. The payment of overtime to Altana employees?
d. The loss of goodwill and future sales that Altana may incur due to this incident?