What Does the UCC Say Regarding a Limitation of Consequential

question 75

Multiple Choice

What does the UCC say regarding a limitation of consequential damages for commercial losses?

• A) A limitation of consequential damages for commercial losses is acceptable so long as both parties are represented by an attorney.
• B) A limitation of consequential damages for commercial losses is acceptable so long as any consumer was represented by an attorney.
• C) A limitation of consequential damages for commercial losses is prima facie unconscionable.
• D) A limitation of consequential damages for commercial losses is analyzed in the same way as a limitation of consequential damages for personal injury.
• E) A limitation of consequential damages for commercial losses is not prima facie unconscionable.

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Definitions:

Cash Flows

The movement of money into and out of a business, project, or financial product.

Growing Annuity

A series of cash flows that grow at a constant rate for a finite number of periods.

Cash Flow Growth Rate

The rate at which a company's cash flow increases over a certain period, reflecting financial health and profitability potential.

Required Rate of Return

The minimum yearly percentage profit necessary for persuading individuals or corporations to invest in a particular security or initiative.