Sam,who Owned an Appliance Store,contracted with Sharon to Supply All

question 30

Multiple Choice

Sam,who owned an appliance store,contracted with Sharon to supply all the new equipment for Sharon's new restaurant.Sharon wanted all the equipment by October 15^th so that she could get the restaurant started and obtain holiday business.Sam and Sharon entered into an agreement by which Sharon would pay Sam $300 per day for every day he was late in providing the appliances.Which of the following is true regarding the section of the agreement involving the late charges?

• A) It is known as a liquidated damages provision which will be enforced by a court so long as it is not so far out of reasonable range as to be punitive in nature.
• B) It is known as a penalty provision which will be enforced by a court so long as the plaintiff can establish proof of compensatory damages in at least the amount of recovery requested.
• C) It is known as a punitive damages provision which will be enforced by a court only if wrongdoing or fraud on the part of the defendant can be established.
• D) It is known as a consequential damages provision which will be enforced by a court only if incidental damages can be established.
• E) It is known as an invalid provision which will not be enforced.

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Definitions:

Sensory Store

The initial process of storing sensory information after it is received, lasting for a very brief period.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Selectively

The act of choosing specific items or data while ignoring others based on certain criteria.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.