Question
Faustina owned a factory that produced automobile tires.There was a machine that was essential to the process, the factory would shut down if the machine
Faustina owned a factory that produced automobile tires.There was a machine that was essential to the process, the factory would shut down if the machine no longer worked.The factory made $1 million a week in profits from manufacturing the tires.Faustina's production manager, Glenn, told her that the essential machine was about to break down, he estimated it would work for one more month.Faustina immediately contacted Sierra, the general manager of a company that manufactured production machines like the one about to break down in Faustina's factory.Sierra assured Faustina that they could deliver a new machine to her factory within two weeks.Faustina ordered a machine for $500,000.The fair market value of the machine was $600,000, Sierra was giving a good deal to Faustina because she wanted to secure their future business.After one month went by, Sierra's company had still not delivered a machine and Sierra called Faustina and told her "Sorry, we're not going to be able to deliver a machine for one more month."That same day Faustina's machine broke down and they were without one for four more weeks.Faustina cannot feasibly have the machine repaired temporarily or find another manner of producing the tires in the four weeks.
What will be Faustina's: 1). compensatory damages, and 2). consequential damages?
- A)$100,000 compensatory, $4,000,000 consequential
- B)$4,000,000 compensatory,$100,000 consequential
- C)All $4,100,000 of the damages are compensatory.
- D)All $4,100,000 of the damages are consequential.
- E)All $4,600,000 of the damages are compensatory.
- F)All $4,600,000 of the damages are consequential.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started