Case Problem with Sample Answer Tyna Ek met Russell Peterson in Seattle, Washington. Peterson persuaded Ek to buy a boat that he had once owned, the O’Hana Kai, which was in Juneau, Alaska. Ek paid the boat’s current owner $43,000 for the boat, and in January 2000, she and Peterson entered into a contract, under which Peterson agreed to make the vessel seaworthy so that within one month it could be transported to Seattle, where he would pay its moorage costs. He would renovate the boat at his own expense in return for a portion of the profi t on its resale in 2001. On the sale, Ek would recover her costs, and then Peterson would be reimbursed for his. Ek loaned Peterson her cell phone so that they could communicate while he prepared the vessel for the trip to Seattle. In March, Peterson, who was still in Alaska, borrowed

$4,000 from Ek. Two months later, Ek began to receive unanticipated, unauthorized bills for vessel parts and moorage, the use of her phone, and charges on her credit card. She went to Juneau to take possession of the boat. Peterson moved it to Petersburg, Alaska, where he registered it under a false name, and then to Taku Harbor, where the police seized it. Ek fi led a suit in an Alaska state court against Peterson, alleging breach of contract and seeking damages. If the court fi nds in Ek’s favor, what should her damages include? Discuss. [Peterson v. Ek, 93 P.3d 458 (Alaska 2004)]

—After you have answered Problem 14–6, compare your answer with the sample answer given on the Web site that accompanies this text. Go to www.cengage.com/blaw/blt, select “Chapter 14,” and click on “Case Problem with Sample Answer.”