FIL 375/Hosack
Fall 2014
Extra Credit
Tuesday, November 11th
2 points possible
PLEASE READ THE FOLLOWING: Your assignment is as follows: For each of the questions, please state the correct answer (“The correct answer is ___.”). Then, state the applicable rule or rules of law. Finally, explain how that rule applies to the facts of the question. YOUR ANSWERS MUST BE WORD-PROCESSED!
1. Grand Fabricating Co. and Good Corp. agreed orally that Good would custom manufacture a compressor for Grand at a price of $120,000. After Good completed the work at a cost of $90,000, Grand notified Good that the compressor was no longer needed. Good is holding the compressor and has requested payment from Grand. Good has been unable to resell the compressor for any price. Good incurred storage fees of $2,000. If Grand refuses to pay Good and Good sues Grand, the most Good will be entitled to recover is
A. $ 92,000
B. $l05,000
C. $120,000
D. $122,000
The answer is D. Good was unable to find another buyer for the compressor and has the right to recover the full purchase price from Grand. They also are entitled to recover the $2,000 in storage fees from Grand, which represent incidental damages.
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