Which Statement Is True Regarding the Availability of Liquidated Damages

question 11

Multiple Choice

Which statement is true regarding the availability of liquidated damages in China?

• A)Liquidated damages are available under the People's Republic of China Contract Law legislation,but only in amounts of up to 20% of the actual damages incurred by the breaching party.
• B)Through judicial mandate,China adopted the U.S.standard for the award of liquidated damages.
• C)Liquidated damages are available under the People's Republic of China Contract Law legislation,but Chinese judicial interpretation of the law limits liquidated damages to no more than 30 percent above the actual damages incurred by the nonbreaching party.
• D)Liquidated damages are available under the People's Republic of China Contract Law legislation,but Chinese judicial interpretation of the law limits liquidated damages to no more than 10 percent above the actual damages incurred by the nonbreaching party.
• E)Liquidated damages are not available in China.

Apply the concept of comparative advantage to determine trade patterns between nations.

Identify factors that influence a nation's decision to specialize in the production of certain goods.

Analyze the impact of specialization and trade on a nation's production and consumption.

Recognize the role of tariffs, quotas, and non-tariff barriers in international trade.

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Definitions:

Insurance Expense

Insurance expense is the cost incurred by a company to obtain coverage against risks, reported as a non-operating expense.

Property Tax

Taxes levied by local governments based on the assessed value of real estate property owned.

Accounts Receivable

An asset, which is a claim against the customer created by selling merchandise or services on credit.

Credit Sales

Sales made on credit, where the payment from the customer is received at a later date.