Clutch Auto Parts Enters into a Contract with Bio Health

question 31

Multiple Choice

Clutch Auto Parts enters into a contract with Bio Health Club for discounted memberships for Clutch's employees.Bio breaches the contract and Clutch enters into a contract with Apex Fitness for the same service at a lower price.Clutch might be awarded nominal damages to

• A)establish,as a matter of principle,that Bio acted wrongfully.
• B)provide Clutch with funds for a foreseeable loss beyond the contract.
• C)provide Clutch with funds for its loss of the bargain.
• D)punish Bio and set an example to deter others from similar acts.

---

Definitions:

Capital

Resources made and used by humans to produce goods and services, including buildings, machinery, and equipment.

Barriers to Entry

Obstacles that prevent new competitors from easily entering an industry or area of business.

Industry Structure

The characteristics that influence the nature of competition and pricing in a particular industry, including the number and size of firms, entry barriers, and product differentiation.

Government Restrictions

Regulations imposed by authorities to control or limit certain activities, behaviors, or operations.