Other Forms of Damages Self-Quiz

 

 

 

 

 

 

Ben and Jerry’s is a new ice cream company that is trying to get its business off the ground. They order expensive ice cream manufacturing machinery from Thermachines and sign contracts with Moo Juice Dairy Farm to supply them with milk. Thermachines fails to deliver the machinery and, because Ben and Jerry cannot meet their demands, their customers take their business elsewhere. As a result, Ben and Jerry go out of business three months after opening. If Ben and Jerry sue Thermachines for lost profits but the court cannot determine with reasonable certainty what those lost profits were, they will award Ben and Jerry:
Choice 1 Expectation damages
Choice 2 Reliance damages
Choice 3 Nominal damages
Choice 4 Nothing
Ben and Jerry’s is a new ice cream company that is trying to get its business off the ground. They order expensive ice cream manufacturing machinery from Thermachines and sign contracts with Moo Juice Dairy Farm to supply them with milk. Ben and Jerry and Thermachines agree that if Thermachines breaches the contract by failing to deliver the machinery, they will pay Ben and Jerry $75,000 in damages. Thermachines fails to deliver the machinery and, because Ben and Jerry cannot meet their demands, their customers take their business elsewhere. As a result, Ben and Jerry go out of business three months after opening. Thermachines refuses to pay the $75,000 and Ben and Jerry sue for breach. They will probably:
Choice 1 Lose, because the $75,000 is arbitrary
Choice 2 Lose, because there is no way to tell what Ben and Jerry’s actual damages were
Choice 3 Win, because Thermachines agreed to pay the $75,000
Choice 4 Win, but only if the $75,000 is a reasonable forecast of what Ben and Jerry’s damages would have been

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