Parthenon Bookstore orders 500 copies of the book Charlotte's Web from Definite Distribution at a price of $2 each (for

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answerhappygod
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Parthenon Bookstore orders 500 copies of the book Charlotte's Web from Definite Distribution at a price of $2 each (for

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Parthenon Bookstore orders 500 copies of the book Charlotte'sWeb from Definite Distribution at a price of $2 each (for a totalorder cost of $1000) for delivery by May 15. The shipping containercontaining the books sinks on the journey to the United States. OnApril 20, Definite Distribution notifies Parthenon Bookstore thatdue to the sinking and other supply chain issues, it will not beable to deliver any of the books. This incident has a couple ofconsequences:
Consequence I: Parthenon is able to find another supplier thatcan deliver 500 copies of Charlotte's Web. But, Parthenon has topay this other supplier $5 per book (for a total order cost of$2500), and the books will not be delivered until June 15.
Consequence II: Parthenon had formed a contract to resell all500 copies of Charlotte's Web to Summer Fun Camp to distribute tocampers as a reading project. Summer Fun Camp was going to payParthenon $6 a book. But, since Summer Fun Camp started on June 1and needed the books before camp began, Parthenon lost the sale toSummer Fun Camp. Parthenon has not been able to find another buyerfor the books, since most school programs have already orderedtheir summer reading books. Parthenon decides to sue DefiniteDistribution for breach of contract and is trying to decide what itshould ask for in damages.
This discussion question uses the scenario above and has fiveparts. To receive full credit, you must answer all parts,explaining your reasoning.
Part 1) If Parthenon asks for compensatory damages, would theybe related to Consequence I, Consequence II, or both? Why?
Part 2) How much should Parthenon ask for in compensatorydamages, and why?
Part 3) If Parthenon asks for consequential damages, would theybe related to Consequence I, Consequence II, or both? Why? Part
4) How much should Parthenon ask for in consequential damages,and why?
Part 5) If Definite Distribution wants to avoid payingconsequential damages, what argument should Definite Distributionmake?
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