A Liquidation of Damages Clause in a Consumer Contract Is

question 28

Multiple Choice

A liquidation of damages clause in a consumer contract is enforceable if it:

• A) is not in excess of twice the provable damages.
• B) is agreed to by both parties to the contract.
• C) reasonably attempts to estimate the actual harm caused by a breach.
• D) is a reasonable amount designed to punish the breaching party.

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Definitions:

Confederate South

The southern states of the United States that seceded from the Union in 1860-61, forming the Confederate States of America, leading to the American Civil War.

Punishable by Death

Certain crimes or legal offenses deemed so severe that they carry the death penalty as a potential form of punishment.

Glorieta Pass

A significant site of the American Civil War, located in New Mexico; it was the scene of a decisive battle in 1862.

Union Victory

The term refers to the triumph of the Northern states, the Union, over the Confederate states in the American Civil War, leading to the preservation of the United States and the abolition of slavery.