Which of the Following Statements Is Incorrect Concerning Liquidated Damages

question 14

Multiple Choice

Which of the following statements is incorrect concerning liquidated damages?

• A) A liquidated damages clause will be enforced if, when the contract was made, it was difficult to estimate actual damages.
• B) The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach.
• C) Nominal damages are not the same thing as liquidated damages.
• D) Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

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Definitions:

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Strategic Control

An attempt to make sure that strategies are well implemented and that poor strategies are scrapped or modified.

Top Management

The highest tier of executives and decision-makers in an organization, responsible for setting strategic directions and policies.

Middle Management

A level of management in an organization that is below top executives and above frontline employees, responsible for implementing company policies and strategies.