A more thorough explanation:

Consequential economic loss is a type of monetary loss that occurs as a result of a defective product or service. It includes both direct and indirect losses that are beyond the immediate economic loss.

Direct economic loss is the most common type of economic loss. It refers to the loss that occurs directly from insufficient product quality. For example, if a product fails to meet the promised or warranted quality, the buyer may suffer a loss of bargain damages. This is the difference between the actual value of the goods accepted and the value they would have had if they had been delivered as promised or warranted.

Consequential economic loss is a type of economic loss that results from a defective product or service and is beyond direct economic loss. It includes losses such as lost profits, loss of goodwill, or business reputation. For example, if a company produces a defective product that causes harm to a consumer, the consumer may sue for consequential economic loss, which includes the cost of repair or replacement of the defective property, as well as commercial loss for the property's inadequate value and consequent loss of profits or use.

Another example of consequential economic loss is when a business suffers a loss of profits due to a delay in the delivery of goods caused by a defective product. The business may sue for consequential economic loss, which includes the lost profits that resulted from the delay.

These examples illustrate how consequential economic loss goes beyond direct economic loss and includes losses that are indirect but still a result of a defective product or service.