Which of the Following Is Correct with Respect to Consequential

question 31

Multiple Choice

Which of the following is correct with respect to consequential damages under the Code?

• A) Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods.
• B) Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers.
• C) Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs.
• D) All of these are correct.

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Definitions:

Competitive Level

The extent of competition within a market, characterized by the number of firms and their ability to set prices.

Monopolist's Profits

The excess earnings a monopolist obtains over what it would earn in a competitive market due to its market power.

Competitive Conditions

The characteristics of a market environment that influence the level of competition between businesses, including the number of competitors, product differentiation, and barriers to entry.

Inefficiency

A situation in which resources are not used in the most productive way, leading to wasted inputs or suboptimal output.