Kathy paid Protection Alarm Co. (hereinafter Protection) $2,000 to install an alarm system on her home. Unfortunately,
Question:
Kathy paid Protection Alarm Co. (hereinafter "Protection") $2,000 to install an alarm system on her home. Unfortunately, during installation Protection forgot to hook up the connection that notifies Protection when the alarm is triggered. Two months after installation Kathy's home was burglarized while she was on vacation and even though the alarm sensors were triggered, notification did not reach Protection. Kathy did not learn of the break in until she returned from vacation three weeks later. The burglar stole $10,000 in personal property from Kathy and neither burglar nor property was ever found. After the burglary, Kathy hired a competing alarm company to install a working alarm system at a cost of $2,000, and sued Protection for $14,000. Protection argues it is only responsible for $2,000 (the cost of the original alarm system), but not the additional $12,000 (value of the stolen personal property and cost of new system).
What you've learned about damages to discuss whether or not Protection is correct. Discuss all of the possibilities.
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young