Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 9

Tristar bought a 30-second commercial for its new skin care product on PM Evening Magazine on February 27, 1991, because that program was scheduled to air a news segment on skin care. The segment talked about products containing "Nayad," an ingredient in Tristar's product. The contract provided that the ad "must run on Tuesday February 27, 1991." The ad did not run during the show, and Tristar sued for damages, including lost profits. Westinghouse sought a summary judgment, arguing that lost profits of a new company are too speculative to be recovered. Are lost profits too speculative to be recovered as damages?