What If a Liquidated Damage Clause Is Punitive in Nature

question 47

Multiple Choice

What if a liquidated damage clause is punitive in nature?

• A)The UCC allows punitive liquidated damages as long as the parties negotiated in good faith to include a liquidated damages clause.
• B)The UCC allows punitive liquidated damages if there were lost profits.
• C)The UCC allows punitive liquidated damage clauses but common law does not.
• D)The UCC allows punitive liquidated damages only in contracts for sale,but not lease contracts.
• E)Courts will not enforce the liquidated damage clause if it is punitive in nature.

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Airline Travel

The process of transporting passengers and cargo by aircraft from one location to another.

Normal Good

A type of good for which demand increases as the income of individuals increases, reflecting a direct relationship between income and demand.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.

Future Price Decline

The expectation that the price of goods or services will decrease in the future, often influencing consumer and business decisions.