Which Statement Is True Regarding a Liquidated Damages Clause

question 38

Multiple Choice

Which statement is true regarding a liquidated damages clause?

• A)A provision for liquidated damages is voidable because of public policy.
• B)A provision for liquidated damages will be enforced regardless of whether it is punitive in nature.
• C)A provision for liquidated damages is illegal.
• D)A provision for liquidated damages is enforceable so long as it is not punitive in nature.
• E)A provision for liquidated damages is void because of public policy.

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Definitions:

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors via intermediate bipolar cells and transmit it to the brain through the optic nerve.

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Retina

The light-sensitive layer at the back of the eye that converts light into neural signals for visual recognition.

Lens

A transparent structure in the eye that focuses light that enters the eye onto the retina, enabling visual perception.