A company intended to sell a high end refrigerator which included French doors, external water and ice dispenser for $10,499 but mistakenly advertised it for $8,449. The company honored the advertising price and sustained a loss of $2,050. The company has an unendorsed CGL policy. The company intends to file a claim for this loss with its insurer. Is this a covered loss? Explain your answer referring to the coverage involved, insuring agreement and any exclusions that may apply.
A company intended to sell a high end refrigerator which included French doors, external water and ice dispenser for $10,499 but mistakenly advertised it for $8,449. The company honored the advertising price and sustained a loss of $2,050. The company has an unendorsed CGL policy. The company intends to file a claim for this loss with its insurer. Is this a covered loss? Explain your answer referring to the coverage involved, insuring agreement and any exclusions that may apply.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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E04
Transcribed Image Text:A company intended to sell a high end
refrigerator which included French doors,
external water and ice dispenser for $10,499
but mistakenly advertised it for $8,449. The
company honored the advertising price and
sustained a loss of $2,050. The company has
an unendorsed CGL policy. The company
intends to file a claim for this loss with its
insurer. Is this a covered loss? Explain your
answer referring to the coverage involved,
insuring agreement and any exclusions that
may apply.
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