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The Consequences of Overstating Fuel Economy

Author

Listed:
  • David Schap

    (Department of Economics and Accounting, College of the Holy Cross)

  • Cory Beck

    (Department of Economics and Accounting, College of the Holy Cross)

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

  • David Schap & Cory Beck, 2015. "The Consequences of Overstating Fuel Economy," Working Papers 1514, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:1514
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    File URL: https://journals.sagepub.com/doi/abs/10.1177/056943451506000105
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