The Amount of Liquidated Damages Included in a Contract That

question 72

Multiple Choice

The amount of liquidated damages included in a contract that would be upheld by a court:

• A) must be reasonable in light of the inconveniences or lack of feasibility of obtaining an adequate remedy.
• B) may be so high as to be punitive to the breaching party.
• C) may be regarded as a penalty.
• D) All of these.
• E) None of these.

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Definitions:

Supply-Operations Coordination

The process of integrating supply chain management and operations management to enhance efficiency and effectiveness.

Operational Excellence

The execution of business strategy more consistently and reliably than the competition, resulting in lead performance in revenue and profitability.

Indirect Spend

Expenses on goods and services that are not directly incorporated into a product being manufactured, such as office supplies or professional services.

Direct Spend

Expenditures directly associated with the production of goods or services, such as raw materials and manufacturing costs.