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Use outside sources but provide the URL and In-Text Citation OIL REFINERY BREACH OF CONTRACT Assume that you have been hired as an expert witness

Use outside sources but provide the URL and In-Text Citation

OIL REFINERY BREACH OF CONTRACT

Assume that you have been hired as an expert witness for the oil producer who is suing the transporter/refiner for breach of contract. You have been asked to perform an examination and report on your findings, conclusions, and opinions in relation to the plaintiff's lost profits. Assume the following:

  • The industry is oil production (at a well-head), transportation, and refinement.
  • The transporter and refiner are one company.
  • The transporter refused to accept oil at the well-head for three months because of quality issues with oil from that well in previous months.
  • The oil refinery was at 60% of capacity during three months for which oil was refused.

Case discussionConsider the following questions:

  1. If oil quality is subject to machine testing and objective metrics, is it appropriate to examine oil quality? Why or why not?
  2. Is profitability and cost analysis of the oil production company during the three-month shutdown relevant? Why or why not?
  3. Is profitability and cost analysis of the oil production company during period before and after the three-month shutdown relevant? Why or why not?

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