What Does the UCC Provide Regarding Liquidated Damages If the Parties

question 63

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 because liquidated damages are unavailable under the UCC unless the parties have expressly agreed to them.

---

Definitions:

Capital Commitments

Obligations of a company to spend capital in the future for the purchase of assets or for investment purposes.

Entrepreneurial Team

A group of individuals with complementary skills and a shared vision, working together to launch and develop a new business venture.

Economically Viable

An initiative, project, or business is considered economically viable if it has the potential to generate enough revenue or benefits to cover its expenses and provide a return on investment.

Discontinue Funding

The act of stopping the provision of financial resources to a project, initiative, or company.