Craig Ordered a New Car and Was Required to Pay

question 54

Multiple Choice

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

• A) If no deposit had been paid, there could be no contract.
• B) The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach.
• C) If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference.
• D) The deposit must be a fair reflection of the loss actually suffered.
• E) A down-payment is an amount of money to be forfeited if either party is in breach of contract.

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Definitions:

Level Of Significance

In hypothesis testing, the threshold below which a p-value indicates that the observed data would be highly unlikely under the null hypothesis.

GPAs

Grade Point Averages, a numerical calculation representing the average value of the accumulated final grades earned in courses over time.

Campuses

Plural for campus, referring to the grounds and buildings of a university or college where academic activities take place.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more independent samples, determining if there is a statistically significant difference between them.