Problem
Having heard that it was a profitable new business, Smith decided to breed emus. They are flightless birds that reproduce rapidly and provide high-quality meat. For $4,000, Penbridge Farms sold Smith a "proven breeder pair," guaranteeing that the lovebirds had already bred together. When the birds failed to mate, Smith discov-ered that they were both male. Penbridge refused to return Smith's money. Smith sued, asking the court for direct as well as incidental and consequential damages. The evidence suggested that Smith stood to make $100,000 from one season's chicks. To what kind of damages is Smith entitled? Will he recover lost profits?