Under the Economic Loss Rule, When a Breach of Contract

question 328

Multiple Choice

Under the economic loss rule, when a breach of contract does not include a tort, such as injury to persons, the damages:

• A) only relate to economic losses suffered from the breach
• B) are limited to half the economic losses suffered from the breach
• C) are not related to the monetary losses suffered from the breach
• D) must exceed the direct costs suffered from the breach
• E) none of the other choices are correct

---

Definitions:

Hierarchy of Authority

A system in organizations where individuals are ranked according to their roles and responsibilities, establishing a clear line of command from top to bottom.

Formal Structure

The officially designated arrangement of roles and responsibilities within an organization, typically outlined in organizational charts and documents.

Unity of Command

A principle stating that each employee should report to one and only one manager to avoid confusion and conflict.

Managerial Authority

The power vested in managers to make decisions and direct resources to achieve organizational goals.