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The Consequences of Overstating Fuel Economy

2015; SAGE Publishing; Volume: 60; Issue: 1 Linguagem: Inglês

10.1177/056943451506000105

2328-1235

Corey Beck, David Schap,

Legal and Constitutional Studies

Economic analysis of law is applied to various models derived from a recent breach of contract by Hyundai Motor Company (Co.), which overstated the fuel economy of its Elantra model. The paper explores appropriate damages for breach of contract by Hyundai in hypothetical cases involving either intentional or unintentional breach. Depending on the specific scenario, losses may or may not be recoverable. A variety of ways are explored in which to calculate damages that serve to make customers whole.