6.1 Discussion Post

Introduction

An agricultural cooperative ships sugar from Hawaii to California. The shipping company that the cooperative uses to ship its sugar notified the cooperative that by a certain date they were no longer going to ship for the cooperative. The cooperative then contracted with a shipbuilder for the construction of a ship-transport to carry its sugar. The contract called for delivery on a date certain. Both parties agreed that if delivery was not made on the date specified in the contract that the shipbuilder would pay liquidated damages in the amount of $17,000.00 per day. The shipbuilder delivered the finished transport eight and one-half months after the specified date. The cooperative demanded damages from the shipbuilder totaling $4,413,000.00. When the shipbuilder refused the demand, the cooperative sued for damages. The shipbuilder defends the suit stating that the amount demanded is a penalty having no bearing on the actual damages that were incurred.

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Initial Post Instructions

Respond to the following questions:

• Define the concept of liquidated damages.
• What is the argument for the cooperative for the damages it seeks?
• What is the argument that the shipbuilder has in claiming that the damages sought are a penalty?
• What is the reasoning of the court in your opinion?
• Do you agree or disagree with the Court’s decision? Explain.

Discussion Response Instructions

Respond to at least two postings from a classmate by taking an idea or thought raised and taking that thought into a new direction or by providing new information. Do not simply repeat information from your original posting or that of a classmate, or state that you agree or disagree. You must explain your reasons.

Writing Requirements

• In addition to one initial post, respond to at least two peers.
• Initial Post Length: minimum of 350 words
• Using APA format, incorporate appropriate in-text citation(s) referring to the academic concept with corresponding references page for the initial post.
• Minimum of 1 scholarly or professional resource in addition to the textbook for initial post.

Tips for Success

Pay attention to the instructions for each assignment. Proofread all work carefully to remove spelling and grammatical errors