Is the disclaimer of any consequential damages contained in the Purchase Order Acknowledgment part of the agreement between Burger and Pine?

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Home>Business & Finance homework help>Management homework help>Is the disclaimer of any consequential damages contained in the Purchase Order Acknowledgment part of the agreement between Burger and Pine?

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Pine Trees, Inc.
Student Coaching Notes

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Recovery of Lost Profits

  • Is the Lost Profits Limitation Clause Part of the Contract?

  • May an Established Business Recover Lost Profits Based on Projection of Future Income?

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Is the Lost Profits Limitation Clause Part of the Contract?

Is there an Acceptance?

- Definite

- Timely

- Not Conditional on Offeror’s Assent

Are the Additional/Different

Terms Part of Contract?

Rejection & Counter Offer

Both Parties Merchants

At Least One Party is Not a Merchant

No, unless Offeror Expressly Consents

Yes, unless

- Material Alteration

- Offer Limit Acceptance

- Offeror Objects

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Material Alteration

Surprise or Hardship Standard

Clauses that deny implied warranties

Clauses that require arbitration

Clauses that limit remedies

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May an Established Business Recover Lost Profits Based on Projection of Future Income?

Reasonable Certainty Standard

Not Speculative in Nature

No Absolute Precision is Required

May Rely on Statistical Models based on Past Financial Data

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Question 2a:
Getting the Histogram

  • Use Excel to Calculate Profits on Spreadsheet File Pine Case.

  • Divide Profits Range (Highest Minus Lowest) by 6 to Get Bin Size and Round to Nearest 1000’s.

  • Manually Input 6 Upper Values of Bins into Column of Spreadsheet File Pine Case.

  • Follow Directions for Constructing Histograms on Using_Excel_for_Stat PowerPoint.

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Questions 2b & 2c:
Descriptive Statistics

  • Follow Directions for Descriptive Statistics on Using_Excel_for_Stat PowerPoint.

  • Use a 99% Confidence Level when Using Excel.

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Question 2 d:
Expected Exposure

  • Expected Exposure = Construction Costs + Total Expected Profits for Six Months

  • Basis for Compensation

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Question 4:
Hypothesis Test

  • Test Mr. Washington’s Claim that Offer Underestimated Lost Profits (Profit Increased During Last Six Months).

  • Follow Directions for Hypothesis Testing on Using_Excel_for_Stat PowerPoint.

  • Use Two Sample Assuming Equal Variances.