Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 13

In March, Amy contracted for Gino Fashion Tuxedo to outfit her groom on their wedding day. The contract provided that any cancellation would automatically result in forfeiture of the deposit. Weeks later, the couple broke up and Amy notified Gino that the October wedding was off. Gino's charged Amy's credit card for the full deposit amount of $804. Amy sued Gino's, claiming the liquidated damages clause was an unreasonable penalty. What was the result?