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:

Body Movements

The act of changing the position or posture of the body or any of its parts, often studied in ergonomics to improve human-machine interaction and workplace safety.

Scanlon Plan

A participative management method that focuses on rewarding employees for increases in productivity.

Labour Cost

The total expense incurred from compensating employees for their work, including wages, benefits, and taxes.

Compensation Schemes

Systems or programs designed to reward employees monetarily for their work or performance.