CPSM® Exam 1 Supply Management Core

What is the primary purpose of a liquidated damages clause in a supply contract?

To penalize suppliers for poor quality To pre-establish compensation for specific contract breaches such as late delivery To limit the buyer's total liability To define warranty terms

Correct Answer:

To pre-establish compensation for specific contract breaches such as late delivery

Access more questions from this quiz

Continue to CPSM® Exam 1 Supply Management Core for more practice questions and the full quiz experience.

Access More Questions