Assume that two computer manufacturers - Alpha and Beta - deliver identical shipments of malfunctioning laptops. The

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Assume that two computer manufacturers - Alpha and Beta - deliver identical shipments of malfunctioning laptops. The defective machines each cause customers $10,000 in direct damages and $50,000 in consequential damages. Alpha’s contract contained a limitation of damages clause, and it pays only $10,000. Beta’s contract had no such clause, and it is on the hook for $60,000. Is this fair?

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Business Law and the Legal Environment

ISBN: 978-1133587491

5th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson

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