What If a Liquidated Damage Clause Is Punitive in Nature

question 33

Multiple Choice

What if a liquidated damage clause is punitive in nature?

• A) The UCC allows punitive liquidated damage clauses but common law does not.
• B) The UCC allows punitive liquidated damages as long as the parties negotiated in good faith to include a liquidated damages clause.
• C) The UCC allows punitive liquidated damages only in contracts for sale, but not lease contracts.
• D) The UCC allows punitive liquidated damages if there were lost profits.
• E) Courts will not enforce the liquidated damage clause if it is punitive in nature.

---

Definitions:

Role-taking

The process of mentally assuming the perspective of another individual to understand their thoughts, feelings, and actions.

Assisted Suicide

Intentionally killing oneself with help from others.

Euthanasia

The deliberate ending of the life of a person who has an incurable or painful disease.

Total Institutions

Places where individuals are cut off from the wider society and lead an enclosed, formally administered life, examples include prisons and military boot camps.