Which Is NOT a Correct Statement Concerning a Liquidated Damages

question 40

Multiple Choice

Which is NOT a correct statement concerning a liquidated damages clause?

• A) If the clause is enforced, the injured party can collect no more than the amount specified.
• B) If the clause is enforced, the injured party has a choice between compensatory damages or liquidated damages.
• C) It must be possible to determine actual damages.
• D) The amount of liquidated damages are established by the parties to the contract.

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Definitions:

Scale of Production

The size or magnitude of manufacturing operations, which can influence costs, efficiency, and profitability.

Average Costs

The total cost of production divided by the quantity of output produced, indicating the cost of producing each unit.

Exhibits

Displays or presentations, often in museums or galleries, that showcase artifacts or works of art for public viewing.

Economies of Scale

Refer to the cost advantages that enterprises obtain due to their scale of operation, typically resulting in the reduction of cost per unit.