Cow's Milk LLC needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Inc. Cow's Milk tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy Supplies ships the part late. Cow's Milk can recover
A)$13,000.
B)$10,000.
C)$3,000.
D)$0.

Question

Quizplus · Accepted Answer

Cow's Milk can recover the $10,000 in consequential damages because Dairy Supplies was informed of the potential loss if the part was not delivered on time.

Cow's Milk LLC Needs a Certain Part for Its Pasteurizing