Larry Has Booked a Hotel Room for a Conference at a Rate

question 7

Multiple Choice

Larry has booked a hotel room for a conference at a rate of $100 per day for five days.When he arrives to check in,Larry is told that the hotel was overbooked and it cannot supply him with a room.Larry is forced to go to the only hotel in town with available rooms and pay $150 per night.If Larry sues the original hotel for damages and wins

• A) he will be entitled to compensatory damages in the amount of $250.
• B) he will be entitled to consequential damages in the amount of $250.
• C) he will not be entitled to any damages because the additional costs were not foreseeable.
• D) he will be entitled to liquidated damages in the amount of $250.

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Definitions:

Debt Investments

Investments made in securities that require the issuer to repay the principal along with interest.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and close to their maturity.

Internal Audits

Evaluations conducted internally to assess the effectiveness of a company's operations, controls, and compliance with regulations and policies.

Collusion

An illegal agreement between parties to deceive or defraud others, often involving price-fixing or the manipulation of markets.