Question

Sheila goes to the only car dealer in town to purchase a car. She tells the dealer that this will be her first car and that she needs it to travel to a distant city for a new job that starts in two days. After coming to an agreement, the dealer tells her the car will be ready at 9:00 am the next morning. He then asks her out to dinner for that night. Sheila says no. The dealer is very upset at her rejection so he refuses to provide to her the car the next morning breaching the contract. Sheila has no way to get to the new job and she is fired.
A.Sheila can only sue for compensatory damages related to the breach of contract.
B.Sheila can sue for exemplary damages because a tort has been committed.
C.Sheila is entitled to consequential damages because the dealer knew that she needed the car for travel to the new job.
D.Sheila is entitled to nothing because the dinner rejection gave the dealer just cause to breach the contract.

Answer

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