Which of the Following Is Generally True Regarding a Liquidated-Damage

question 61

Multiple Choice

Which of the following is generally true regarding a liquidated-damage clause?

• A)A liquidated-damage clause is per se illegal.
• B)A liquidated-damage clause is void in the interests of public policy.
• C)A liquidated-damage clause is voidable in the interests of public policy.
• D)A liquidated-damage clause is enforceable if it is not punitive in nature.
• E)A liquidated-damage clause will be enforced,regardless of whether it is punitive in nature.

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Definitions:

Total Assets

The sum of all assets owned by a company, including cash, investments, property, and equipment.

Current Liabilities

Financial obligations or debts a company owes and is expected to pay within a year or within the operating cycle.

Return on Net Sales

A financial ratio indicating the efficiency of a company in generating profit from its net sales, usually expressed as a percentage.

Net Income Before Taxes

Total revenue minus total expenses, excluding tax expenses.