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:

Cycle Billing

The process of billing customers at different times during the month based on a specific schedule or cycle.

Computerized Billing

The use of digital and computer technologies to manage and send invoices for services or goods provided.

Monthly Billing

A payment model where charges for services or products are invoiced to customers on a monthly basis.

Third Party

Someone other than the two principals in a transaction; when referring to checks, a type of check made out to the patient by another unknown person.