Kramer owned and operated CIS, a local Internet service provider. Wanting to upgrade from its dial-up service,

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Kramer owned and operated CIS, a local Internet service provider. Wanting to upgrade from its dial-up service, Kramer contracted for Axtell to install equipment so Kramer could offer wireless services of 2.4 GHz for residential users and 5.8 GHz for commercial customers. He believed he would have about 3,000 customers for the service. Axtell installed equipment on towers. The service worked in the 2.4 GHz range, but had problems. There was no service in the 5.8 GHz range.
Kramer sued. The trial court found that the parties entered into an oral contract and that Axtell breached the contract and warranties of fitness for a particular purpose. The trial court stated:

1. How could the disagreement about lost profits be so large? Why did the court go for the low figure?
2. Could Kramer have sued for punitive damages?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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