The Shopping Channel (TSC) has contracted out the management of its large global network of thousands of computers to Morhel Communications (MC), a network management specialist. All is well until one night in the dead of an Ottawa winter, one of the net nerds, feeling a little bored, downloads a naughty movie which contains a vicious virus. The virus shuts TSC down for 24 hours at a cost of $100,000,000 in lost sales. Even though MC has a contract condition limiting their vicarious liability to $10,000, TSC sues MC for tort.
a. How was the estimate of $100,000,000 obtained?
b. Would TSC prevail? Answer with 2 citations to legal cases.