What Damages Are Recoverable in a Case of Promissory Estoppel

question 3

Multiple Choice

What damages are recoverable in a case of promissory estoppel?

• A) profits that the promisor expected
• B) profits that the promisee expected
• C) an amount necessary to restore the promisee to the position he or she would have been in had the promisee not relied on the promise
• D) an amount necessary to restore the promisor to the position he or she would have been in had the promisor not relied on the promise

---

Definitions:

Federal Trade Commission

A federal agency established to protect consumers and promote competition by preventing anticompetitive, deceptive, and unfair business practices.

Price-Fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them be determined naturally by supply and demand.

Economic Efficiency

A state in which resources are allocated in a way that maximizes the production of goods and services at the lowest cost, while achieving the highest possible welfare or utility.

Negative Externalities

Costs experienced by third parties due to the actions of others that are not reflected in market prices.