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Late fee for cable Internet service upheld.(SECURITY and the LAW)
- Article from:
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Security Distributing & Marketing
- Article date:
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August 1, 2006
- Author:
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Copyright informationCOPYRIGHT 2006 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A recent California case discussed the applicability of a liquidated damage clause contained in a cable Internet provider's service agreement. Liquidated damages are a specified amount of damages that are included in a contract in case one side breaches, or does not fulfill, its side of the contract.
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The defendant in the lawsuit was a cable Internet provider who had approximately 500,000 customers in the area. An advocacy group alleged that the late fee liquidated damage provision in the providers' service agreement was illegal because the amount of liquidated damages was set by the provider and was not the result of mutual negotiations between ...