Rural Utility, Inc

question 46

Multiple Choice

Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. If the parties rescind the contract, Shovel's refund of the payment would be

• A) a penalty.
• B) liquidated damages.
• C) restitution.
• D) specific performance.

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Definitions:

Law School

An educational institution specializing in the study of law and the training of future lawyers.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).

Profit-Maximizing

A strategy or approach adopted by firms aiming to make the highest possible profit from their operations, often involving adjustments in production or pricing.

Net Revenue

The total amount of income generated by a business after deducting costs directly associated with making and selling its products.