Tile & Grout (T&G) Contracts to Resurface the Insides of the Pools

question 42

Multiple Choice

Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover

• A) ​the cost of new pools.
• B) ​the difference between T&G's price and the eventual cost of resurfacing.
• C) ​the loss of profit from the delayed opening.
• D) ​nothing.

---

Definitions:

Insurance

A financial product that provides compensation for specific losses or damages in exchange for regular payments, known as premiums.

Insured Risk

A risk that has been covered by an insurance policy, transferring the financial burden of a potential loss from the insured to the insurer.

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, leading to an imbalance in the decision-making process.

Unsuspecting Buyer

A consumer who purchases goods or services without being aware of all the relevant information, often leading to disadvantageous situations.