The band "The Colorfast Tattoo" signs a contract to sing at the Hornet Theatre. The band and the owner agree that they will include a liquidated damage clause in the contract. Let's really make the penalty stiff: so whoever breaches has to pay the other
guy one hundred grand.". This sum was far above either "The Colorfast Tattoo's" usual payment or the profits the promoter expected from the performance. Is this clause valid? Explain your answer
Liquidated damages clauses are effectively privately permitted delegations from the courts to the parties to fix damages if they arise in a contract transaction. The courts will enforce these clauses when they are fair predictions of what actual damages will be. Such clauses cannot be used as private negative incentives-so if the clauses are too onerous they will be deemed penalties and not enforced. In this case the parties acknowledge they are penalties; so the contract clause would clearly not be enforceable.
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In which one of the following situations would OD techniques be the most helpful?
A. increasing efficiency among employees in a firm B. helping employees from two similar organizations work better together in a strategic alliance C. dealing with employee stress that comes from revitalizing an organization or adapting to a merger D. facilitating discussion of ethical issues in preparing a company's code of ethics E. working with the CEO to determine how to increase profitability
Which of the following is true for customer satisfaction?
A) Satisfaction is a deeply held commitment to rebuy or repatronize a preferred product despite situational influences. B) Consumers often form more favorable perceptions of a product with a brand that is new. C) The ultimate goal of a customer-centered firm is to create high customer satisfaction. D) Only increased customer satisfaction can help a company increase its profits. E) Greater customer satisfaction has also been linked to higher returns and lower risk in the stock market.
Knapper Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed Element per MonthVariable Element per Tenant-DayRevenue - $37.00 Wages and salaries$3,800 $6.10Food and supplies 900 14.90Facility expenses 9,700 4.80Administrative expenses 6,600 0.10Total expenses$ 21,000 $ 25.90The food and supplies in the flexible budget for January would be closest to:
A. $42,243 B. $41,018 C. $41,130 D. $41,726
Persuading the target of influence that complying will advance his career is known as ______.
A. apprising B. consultation C. inspirational D. rational