Question

Dick's Sporting Goods Store had a contract with Sportspro, a manufacturer of exercise equipment, for the delivery of forty treadmills. The manufacturer failed to deliver. Assume that Dick's, relying on the manufacturer's contractual duty to deliver, spent $500.00 advertising the availability of the treadmills in the local newspaper. Due to the failure of the seller to deliver, the store was unable to satisfy customer demand generated by the ad. Is Dick's entitled to collect the $500.00 it spent on advertising as part of its damages ?

a-Yes, this is an example of direct damages.

b-Yes, this is an example of consequential damages.

c-Yes, this is an example of nominal damages.

d- No

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