Hastro Toys Mfg.operates on a "just-in-time" inventory basis.When one of its suppliers missed a 2:00 p.m.delivery of a key component,the entire assembly line was shut down for the balance of the day.Hastro is suing its supplier for ________ damages.
A)reliance
B)expectation
C)liquidated
D)consequential
E)general

Question

Quizplus · Accepted Answer

The damages suffered by Hastro Toys Mfg. due to the shutdown of the entire assembly line are consequential damages. These damages are a result of the supplier's failure to deliver the key component and have resulted in losses that are not direct or immediate, but rather consequential. Therefore, Hastro is suing its supplier for consequential damages.