Nerdo Computers Had an Insurance Policy on Its Premises, for Which

question 2

Multiple Choice

Nerdo Computers had an insurance policy on its premises, for which it paid a premium of $525 per year. It found a new broker who offered a much lower rate, so it wrote to its current broker to cancel its existing policy. The broker replied that there would be a $100 cancellation fee. Which of the following facts or arguments would help Nerdo avoid having to pay the fee?

• A)If the fee is not mentioned in the contract
• B)If the fee can be characterized as a penalty
• C)If the fee is not a genuine pre-estimate of damages.
• D)Both B and C
• E)All of the above

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Definitions:

Authoritative Parents

Parents who combine warmth and responsiveness with clear guidelines and expectations, balancing demands with emotional support.

Self-reliant

Describes an individual's ability or tendency to rely on their own capacities and resources rather than those of others.

Self-controlled

Having the ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Cultural

Pertaining to the customs, arts, social institutions, and achievements of a particular nation, people, or other social group.