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.

Question

Quizplus · Accepted Answer

The code provides for liquidated damages if the parties have not expressly negotiated a liquidated-damage clause. UCC Section 2-718 pertains to liquidated damages and allows the nonbreaching seller to claim against a breaching buyer 20 percent of the purchase price or $500, whichever is less, as liquidated damages.

What Does the UCC Provide Regarding Liquidated Damages If the Parties