The shopping channel-management of large global network

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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.

Reference no: EM13837315

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