3. Assuming that the consequential damages clause is deemed not part of the contract and further assuming that the delivery crew was negligent in decorating the tree, could Holiday Tree be held liable for the lost profits? In answering this question, make sure to address the legal standard for awarding lost profits and the results from.

We have received your purchase order number 976 dated September 20, 2019. -137 Christmas trees-Evergreen style; -Decorations to be added upon delivery; -unit price $250 -We will ship the first unit to your store in Lakeview, Gould. -Payable net upon delivery. Sophia Martinez Department of Procurement CONDITIONS APPLICABLE TO ALL SALES: Late charges at 10% per month for past due payments; minimum late charge $10. Shipment travel at the risk and cost of Buyer. Risk of loss passes to Buyer at the time of identification. Seller warrants that all goods are of merchantable quality and fit for the intended purpose. To the extent defect is identified in any tree delivered, Seller shall promptly deliver a replacement tree to Buyer. Buyer waives any claims for consequential damages arising out of this purchase order, including, but not limited to lost profits. DELISH BURGER FINANCIAL DATA FROM THE PRIOR YEAR OF OPERATION* * All figures are after tax Per our discussion from earlier today, Delish Burger orders one hundred thirty seven (137) Christmas Trees - Evergreen style. The trees are to be delivered before December 12, 2019, to each of Delish Burger's 137 restaurants (attached please find a list). HTS delivery crew shall decorate each tree on the site per sample shown by your sales representative, Ms. Miller. Price: $250 per tree, all-inclusive, per quote from Madeline Oakley. Payable net upon delivery and decoration. General Conditions Seller warrants all goods are of merchantable quality and fit for the intended purpose. Seller warrants that all goods are free and clear of all liens and claims by third party and that Seller possesses all rights to sell said goods free and clear. compensation for the potential profits the restaurant could have generated during the downtime. I am attaching the documents I asked him to fax me, which include some of Delish Burger's financial data regarding revenues and expenses during 2018 and 2019. I told Mr. Austin that I sympathize with the lost profits sustained by Lakeview Delish Burger, but that according to our agreement, Delish Burger agreed to waive all claims against us for any consequential damages. After he quickly looked at the Purchase Order Acknowledgment, he said that while there was such a clause in the document, it was not part of the contract since Delish Burger never agreed to it or signed it. I replied that I would look it over and get back to him soon. Required In addition to the financial data provided by Mr. Austin below, please read parts of the Gould Commercial Code and the cases attached in the legal library. Before Ms. Henry replies to Mr. Austin, write an objective report to her (refer to the report guidelines on the Gateway website). (Assume that the applicable precedent is from the fictional jurisdiction of the state of Gould). In preparing your report you may wish to review business law concepts 1, 2 and 10 and statistics concepts 1,2,3 and 9 . As you may remember, Holiday Tree Services, Inc. (HTS) has recently entered into a contract with Delish Burger (Delish), whereby HTS is to supply and decorate a Christmas tree in each of Delish Burger's one hundred and thirty-seven fast food restaurants in Gould each year in December. The first year of the contract was 2019. You undoubtedly remember the December 6, 2019's disaster. On that day one of the Christmas trees that we had delivered and decorated in early December to one of Delish Burger's restaurants in Lakeview, Gould caught on fire. The fire then severely damaged the restaurant's premises, including the kitchen and dining areas. Earlier today, I received an angry call from Duran Austin, the president of Delish, updating me on the recent calculations of losses from the disaster. Our records indicate that the Christmas tree was delivered to Delish Burger's Lakeview site on time and in good order on the morning of Friday, December 6th, 2019. As the manager on site requested our delivery crew, they placed the tree inside the restaurant in an area next to the ordering counter. The crew then spent the next two hours, as they routinely do, decorating the tree to the satisfaction of the on-site manager, Leon Grant. Mr. Grant then initialed the receipt provided to him by our delivery crew, acknowledging receipt and full satisfaction with the decorated tree. Mr. Grant then fully paid for the tree and the services with a company check. The fire broke out inside the Lakeview restaurant just as the last employee was leaving at approximately 11:37 p.m. on December 6th. Fortunately, there were no customers in the restaurant at that time as the store generally closes at 11:00 p.m. on weekdays. Mr. Austin indicated to me during the phone conversation that a report he received yesterday from the local fire department tentatively concluded that the fire originated from the Christmas tree. He went on to say that the report indicates that the lights on the tree required too much power for the one outlet they were plugged into, causing an electrical short. The spark from this instantly ignited the tree. The employee, who had been about to unplug the tree and turn off the lights in the restaurant, was so shocked that he instantly ran out of the restaurant. He then searched for a phone to call the fire department (in his haste he had left his cell phone inside). It took a few minutes to find a phone, giving the fire a chance to spread. Mr. Austin also said that as a result of the fire, the restaurant has been completely shut down for the past three months and that he does not expect the restaurant to be open for at least another three months pending complete renovation of the damaged areas. Mr. Austin then demanded compensation for the losses that Delish's restaurant sustained as a result of the fire. He faxed me a copy of the construction bid Delish's restaurant accepted to reconstruct the premises, which came out to $575,000. In addition to the reconstruction costs, he also demands We have received your purchase order number 976 dated September 20, 2019. -137 Christmas trees-Evergreen style; -Decorations to be added upon delivery; -unit price $250 -We will ship the first unit to your store in Lakeview, Gould. -Payable net upon delivery. Sophia Martinez Department of Procurement CONDITIONS APPLICABLE TO ALL SALES: Late charges at 10% per month for past due payments; minimum late charge $10. Shipment travel at the risk and cost of Buyer. Risk of loss passes to Buyer at the time of identification. Seller warrants that all goods are of merchantable quality and fit for the intended purpose. To the extent defect is identified in any tree delivered, Seller shall promptly deliver a replacement tree to Buyer. Buyer waives any claims for consequential damages arising out of this purchase order, including, but not limited to lost profits. DELISH BURGER FINANCIAL DATA FROM THE PRIOR YEAR OF OPERATION* * All figures are after tax Per our discussion from earlier today, Delish Burger orders one hundred thirty seven (137) Christmas Trees - Evergreen style. The trees are to be delivered before December 12, 2019, to each of Delish Burger's 137 restaurants (attached please find a list). HTS delivery crew shall decorate each tree on the site per sample shown by your sales representative, Ms. Miller. Price: $250 per tree, all-inclusive, per quote from Madeline Oakley. Payable net upon delivery and decoration. General Conditions Seller warrants all goods are of merchantable quality and fit for the intended purpose. Seller warrants that all goods are free and clear of all liens and claims by third party and that Seller possesses all rights to sell said goods free and clear. compensation for the potential profits the restaurant could have generated during the downtime. I am attaching the documents I asked him to fax me, which include some of Delish Burger's financial data regarding revenues and expenses during 2018 and 2019. I told Mr. Austin that I sympathize with the lost profits sustained by Lakeview Delish Burger, but that according to our agreement, Delish Burger agreed to waive all claims against us for any consequential damages. After he quickly looked at the Purchase Order Acknowledgment, he said that while there was such a clause in the document, it was not part of the contract since Delish Burger never agreed to it or signed it. I replied that I would look it over and get back to him soon. Required In addition to the financial data provided by Mr. Austin below, please read parts of the Gould Commercial Code and the cases attached in the legal library. Before Ms. Henry replies to Mr. Austin, write an objective report to her (refer to the report guidelines on the Gateway website). (Assume that the applicable precedent is from the fictional jurisdiction of the state of Gould). In preparing your report you may wish to review business law concepts 1, 2 and 10 and statistics concepts 1,2,3 and 9 . As you may remember, Holiday Tree Services, Inc. (HTS) has recently entered into a contract with Delish Burger (Delish), whereby HTS is to supply and decorate a Christmas tree in each of Delish Burger's one hundred and thirty-seven fast food restaurants in Gould each year in December. The first year of the contract was 2019. You undoubtedly remember the December 6, 2019's disaster. On that day one of the Christmas trees that we had delivered and decorated in early December to one of Delish Burger's restaurants in Lakeview, Gould caught on fire. The fire then severely damaged the restaurant's premises, including the kitchen and dining areas. Earlier today, I received an angry call from Duran Austin, the president of Delish, updating me on the recent calculations of losses from the disaster. Our records indicate that the Christmas tree was delivered to Delish Burger's Lakeview site on time and in good order on the morning of Friday, December 6th, 2019. As the manager on site requested our delivery crew, they placed the tree inside the restaurant in an area next to the ordering counter. The crew then spent the next two hours, as they routinely do, decorating the tree to the satisfaction of the on-site manager, Leon Grant. Mr. Grant then initialed the receipt provided to him by our delivery crew, acknowledging receipt and full satisfaction with the decorated tree. Mr. Grant then fully paid for the tree and the services with a company check. The fire broke out inside the Lakeview restaurant just as the last employee was leaving at approximately 11:37 p.m. on December 6th. Fortunately, there were no customers in the restaurant at that time as the store generally closes at 11:00 p.m. on weekdays. Mr. Austin indicated to me during the phone conversation that a report he received yesterday from the local fire department tentatively concluded that the fire originated from the Christmas tree. He went on to say that the report indicates that the lights on the tree required too much power for the one outlet they were plugged into, causing an electrical short. The spark from this instantly ignited the tree. The employee, who had been about to unplug the tree and turn off the lights in the restaurant, was so shocked that he instantly ran out of the restaurant. He then searched for a phone to call the fire department (in his haste he had left his cell phone inside). It took a few minutes to find a phone, giving the fire a chance to spread. Mr. Austin also said that as a result of the fire, the restaurant has been completely shut down for the past three months and that he does not expect the restaurant to be open for at least another three months pending complete renovation of the damaged areas. Mr. Austin then demanded compensation for the losses that Delish's restaurant sustained as a result of the fire. He faxed me a copy of the construction bid Delish's restaurant accepted to reconstruct the premises, which came out to $575,000. In addition to the reconstruction costs, he also demands