Question 1

Nartic Oil Refinery ships its only pump to Nami Hydro Inc., the manufacturer, for repair. Nartic hires Passer Transportation, Inc., to take the pump to Nami and to return it to Nartic as soon as the repair is complete. Nartic is forced to suspend operations without a pump, but Passer does not know this. Nartic expects to be without the pump for 7 days and to lose profits of $7,000. When the pump is not returned by the end of the 7th day, Narticrents a pump at a cost of $200 per day. Passer delays five more days before returning the pump. Nartic files a suit against Passer, asking for compensatory, consequential, and punitive damages. Discuss whether Nartic will recover all damages it has asked for.