Aisha runs a small home-made snack that sells many small cookies which she sells to the customers and also to another shop. During a busy situation, the fryer breaks down and because of that, Aisha cannot make the snacks as she does not has any replacement. The broken part needs to be replaced by the manufacturer of the fryer. Aisha then calls Jim, a delivery man to take the broken part and send them to the manufacturer. When Jim collected the part, he told Aisha that the part will be delivered later that day to the manufacturer. Aisha stresses the importance of the quick delivery as the snack business will close. Jim later forgot to deliver the part that day up to another 5 days. As the impact, Aisha's business close for 7 days and suffering for significant losses including not able to sell the snacks to the customers and other shops and a cancellation of $3,000 office party that was scheduled to be held at her place during the close. Refer to the relevant common loaw rules and cases 1. Advise Aisha whether she can claim damages to Jim 2. Describe 2 commercial reasons why the calculation of losses are important for a business person to understand

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Aisha runs a small home-made snack that sells many small cookies which she sells to the customers and also to another shop. During a busy situation, the fryer breaks down and because of that, Aisha cannot make the snacks as she does not has any replacement. The broken part needs to be replaced by the manufacturer of the fryer. Aisha then calls Jim, a delivery man to take the broken part and send them to the manufacturer. When Jim collected the part, he told Aisha that the part will be delivered later that day to the manufacturer. Aisha stresses the importance of the quick delivery as the snack business will close. Jim later forgot to deliver the part that day up to another 5 days. As the impact, Aisha's business close for 7 days and suffering for significant losses including not able to sell the snacks to the customers and other shops and a cancellation of $3,000 office party that was scheduled to be held at her place during the close.

Refer to the relevant common loaw rules and cases

1. Advise Aisha whether she can claim damages to Jim

2. Describe 2 commercial reasons why the calculation of losses are important for a business person to understand

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