In Hadley V

question 19

Multiple Choice

In Hadley v.Baxendale,the Hadleys did not communicate adequately to Baxendale that the crankshaft they were sending to him for repair was the only one they had.The court held,with respect to the profit lost while the mill was closed,that the Hadleys were

• A)not entitled to this amount from Baxendale.
• B)entitled to this amount from Baxendale.
• C)required to pay this amount to Baxendale.
• D)required to pay this amount to the court.

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Definitions:

Tied Good

A product or service that is sold or used together with another product or service, often where one cannot effectively be used without the other.

Profit-maximizing Price

The price at which a company can sell its product to achieve the highest possible profit.

Salads and Steaks

A metaphor representing a range of consumer choices in the market, emphasizing the diversity in preference and consumption.

Tying Strategy

A business practice where a seller requires the buyer to purchase another one of its products as a condition for buying a desired product, often scrutinized for anti-competitive behavior.