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Ralph Ordered the Installation of a Satellite Dish from PrimeStar

Question 10

Multiple Choice

Ralph ordered the installation of a satellite dish from PrimeStar Ltd. for $595. The required minimum deposit was $95, however Ralph paid $200. When Ralph cancelled the order, PrimeStar refused to return the $200 calling it liquidating damages. Actual loss for a cancelled order is estimated by the plaintiff's attorney to be $75. The expected profits on this sale was $60. How much will Ralph end up paying for this cancelled order?


A) $200
B) $135
C) $95
D) $75
E) $60

Correct Answer:

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