Which One of the Following Statements Accurately Describes the Effect

question 35

Multiple Choice

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

• A) This clause requires the injured party to take all reasonable steps to mitigate (lessen) his losses.
• B) The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow" from the breach.
• C) This clause conclusively determines the amount of damages that the court can award.
• D) The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of the breach.
• E) Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves.

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Definitions:

International Commuters

Employees who live in one country but work in another, regularly traveling between the two for their job.

Adaptive IHRM Approach

HRM systems for foreign subsidiaries that will be consistent with the local economic, political, and legal environment.

Foreign Subsidiaries

Companies that are partially or wholly owned by a parent company but operate in a country different from the parent company's location.

Legal Environment

The framework of laws, regulations, and practices that influence the conduct of businesses and individuals within a jurisdiction.