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The Consequences of Overstating Fuel Economy

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Listed:
  • Corey Beck
  • David Schap

Abstract

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.

Suggested Citation

  • Corey Beck & David Schap, 2015. "The Consequences of Overstating Fuel Economy," The American Economist, Sage Publications, vol. 60(1), pages 52-62, May.
    • Handle: RePEc:sae:amerec:v:60:y:2015:i:1:p:52-62
    DOI: 10.1177/056943451506000105
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    References listed on IDEAS

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    1. De Alessi, Louis & Staaf, Robert J, 1994. "What Does Reputation Really Assure? The Relationship of Trademarks to Expectations and Legal Remedies," Economic Inquiry, Western Economic Association International, vol. 32(3), pages 477-485, July.
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