Potential Savings from a Lock-Box System Will Be Reduced By

question 44

Multiple Choice

Potential savings from a lock-box system will be reduced by:

• A) the additional processing time required.
• B) the additional mailing time required.
• C) local bank charges.
• D) an increase in interest rates.

---

Definitions:

Compensatory Damages

Compensatory damages are monetary awards granted in civil litigation to reimburse plaintiffs for actual losses or damages they have incurred.

Consequential Damages

Losses or damages that do not directly arise from a breach of contract but are a result of the breach.

Statute of Limitations

A law that sets the maximum time the parties involved have to initiate legal proceedings from the date of an alleged offense, either civil or criminal.

Breach of Warranty

The failure to fulfill the terms of a promise or assurance, typically related to the quality or condition of a sold product or service.