A company intended to sell a high end refrigerator which included French doors, external water and ice dispenser for $10,499 but mistakenly advertised it for $8,449. The company honored the advertising price and sustained a loss of $2,050. The company has an unendorsed CGL policy. The company intends to file a claim for this loss with its insurer. Is this a covered loss? Explain your answer referring to the coverage involved, insuring agreement and any exclusions that may apply.

A company intended to sell a high end refrigerator which included French doors, external water and ice dispenser for $10,499 but mistakenly advertised it for $8,449. The company honored the advertising price and sustained a loss of $2,050. The company has an unendorsed CGL policy. The company intends to file a claim for this loss with its insurer. Is this a covered loss? Explain your answer referring to the coverage involved, insuring agreement and any exclusions that may apply.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 16.5IP

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