Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Download
Standard view
Full view
of .
Look up keyword
Like this
6Activity
0 of .
Results for:
No results containing your search query
P. 1
The Unconscionability of a Liquidated Damage Clause_ A Practical

The Unconscionability of a Liquidated Damage Clause_ A Practical

Ratings: (0)|Views: 288|Likes:
Published by Carrieonic
The Unconscionability of a Liquidated Damage Clause_ A Practical
The Unconscionability of a Liquidated Damage Clause_ A Practical

More info:

Published by: Carrieonic on Oct 06, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

02/02/2013

pdf

text

original

 
Pace Law Review 
Volume
22,
Issue
1 2001
Article
2
W
INTER
2001
The Unconscionability of a LiquidatedDamage Clause: A Practical Application of Behavioral Decision Theory
Paul Bennett Marrow
Copyrightc
2001 by the authors.
http://digitalcommons.pace.edu/plr/vol22/iss1/2 
 
The
Unconscionability
of
a
Liquidated
Damage
Clause:
A
Practical
Application
of
Behavioral
Decision
Theory
Paul
Bennett
Marrow*
Table
of
Contents
I.
Introduction
.......................................
29
II.
An
Overviewof
the
Law
of
Liquidated
Damage
Clauses
and the
Theoryof
Unconscionability
......
32
A.
An
Overviewof
the
Law
Concerning
the
Viability
of
Liquidated
Damage
Clauses
.......
33
1.
InsufficientLiquidated
Damage
Clauses
...
35
a. InsufficientLiquidated
Damage
Clauses
That
LimitDamages
to
Reimbursement
ofa
Fee
Paid
for
a
Service
Without
Concern
for
Actual
Dam
ages
...............................
36
b.
InsufficientLiquidated
Damage
Clauses
That
Specify
a
Sum
Certain
Without
Concern
for
Actual
Damages..
39c.
Insufficient Liquidated
Damage
Clauses
That
Fix
the
Measure
of
Damage
to
an
Uncertain
Future
Date
or Tim
e
................................
412.
Overly
Sufficient
Liquidated
Damage
C
lauses
....................................
41
a. Contracts
That
Involve Down
Payments
and
Advances
..........................
41
b.
Formula
Clauses
for
Non-Performance.
44
c.
Acceleration
Clauses
for
Breach
of
Contract
...............................
46
3.
Sum
m
ary
..................................
46
*
OfCounsel,
Banks,
Shapiro,
Gettinger,
Waldinger
&
Brennan,
Mt.
Kisco,
New
York.
B.A.
Case
Western
Reserve
University, J.D.
New York Law
School.I
wish
to
thank
the
Hon.
Charles
G.
Banks
and
Arnold
Mitchell,
M.D.
for
their
valu-
able
suggestions
andinsights.
1
 
PACE
LAW
REVIEW
B.
Overview
of
the
General
Rules
Governing
Unconscionability
..............................
47
C.
Sum
m
ary
......................................
53
III.
Nonrational Factors
and
Behavioral
Decision
Theory
(BDT)
......................................
53
A
.
Overview
......................................
53
B
.Effects
.........................................
58
1.
Endowment
Effect
.........................
58
2.
Loss
Aversion
..............................
59
3.
Fram
ing
...................................
59
4.
Extremeness
Aversion
.....................
60
5.
Illusion
ofControl
.........................
61
6.
Affect
(Heuristic)
..........................
61
C.
Biases
and
Heuristics
..........................
62
1.
Biases and Heuristics
That
Deal
With
Decision
Making
Based
on
Experience
.....
63
a.
Overconfidence
and
Unrealistic
Overoptimism
..........................
63
b.
Availability
............................
64
c.
Cognitive Dissonance
..................
65
d.
Representativeness
.....................
652.
Biases
and
Heuristics
That
Involve
Self-Perception
by
Others
......................
66
a.
Cooperation,
Fairness and
the
Appearance
of
Fairness
................
66
3.
Biasesand Heuristics
That
Involve
the
Perception
of
a
Person's
Position Relative
to
a
Fixed
Reference
Point
.................
67
a.
Anchoring
and Adjustment
.............
67
b.
Hindsight
Bias
.........................
68
c.
Status
Quo
Bias
.......................
68D
.
Sum m
ary
......................................
69
IV.
Efforts
to
Link
BDT
to
the
Law
...................
69
A
.
Overview
......................................
71
B.
Securities
Law
and
BDT
.......................
72
C.
The
Law
of
Products
Liability
and
BDT
.......
77
D.
BDT
and
the
Overly Sufficient
Liquidated
Damage
Clause
................................
84
E.
Sum m
ary
......................................
88
[Vol.
22:27
2http://digitalcommons.pace.edu/plr/vol22/iss1/2

Activity (6)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
SLAVEFATHER liked this
SLAVEFATHER liked this
sfreiga liked this
jaffna liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->