Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 13

Cooper Manufacturing Co. contracted with Bright Computers to maintain Cooper's computer system. Cooper's manufacturing process depends heavily on its computer system operating properly at all times. A liquidated damages clause in the contract provided that Bright Computers pay $1,000 to Cooper for each day that Bright was late responding to a service request. On December 8, Bright was notified that Cooper's computer system was "down." But Bright did not respond to Cooper's service call until December 11. If Cooper sues Bright under the liquidated damage provision of the contract, what should the result be?