What Does the UCC Provide Regarding Liquidated Damages If the Parties

question 83

Multiple Choice

What does the UCC provide regarding liquidated damages if the parties do not agree to them?

• A) That the nonbreaching seller may claim against a breaching buyer 20 percent of the purchase price or $500, whichever is less, as liquidated damages.
• B) That the nonbreaching seller may claim against a breaching buyer 20 percent of the purchase price or $500, whichever is more, as liquidated damages.
• C) That the nonbreaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000, whichever is less, as liquidated damages.
• D) That the nonbreaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000, whichever is more, as liquidated damages.
• E) Nothing

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Definitions:

Unreliable

Describes something or someone that cannot be depended upon; opposite of reliable.

Semivariable Costs

Costs that contain both fixed and variable components and change in proportion to activity levels, but not as directly as variable costs.

Direct Costs

Expenses that can be directly traced to producing specific goods or services, such as materials and labor.

Indirect Costs

Costs that are not directly attributable to a specific project, product, or activity but are necessary for the general operation of a business.