If BrainTrain and Natasha had executed a written contract which contained a liquidated damages clause for $200 in the event that BrainTrain breached, and assuming BrainTrain admits to a breach, would that clause be upheld in court?Select Correct Answera) Yes, it is reasonable and fair. b) No, in this case, actual damages can be easily determined. c) No, the amount is too low for the type of harm she suffered. Natasha had a 5-year-old son, Klaus, who had been diagnosed by his pediatric psychiatrist with attention deficithyperactivity disorder (ADHD). The physician tried multiple different medications and dosages with varying resultsto help Klaus. Some would help for a while but then stop working; some would not help at all. Frustrated after ayear of medication trials, Natasha came across an advertisement for a new center called BrainTrain that promisedto help children with ADHD without the use of medications. It was advertised as a privately owned "mentalexercise center" that didn't require a physician's referral and did not employ medical staff. Also among theadvertising material was the story about the founder, John Gadeaux, who overcame his own ADHD withoutdoctors or prescriptions and how he was bringing his technique to the world. Natasha made an appointment withthe center to get more information.While there, Natasha met with Mina, the director of the center. Mina provided numerous pamphlets touting thealmost 100 percent "cure" rate of their method. She even provided Natasha with what looked like a clinical studyconducted by six independent doctors showing a 100 percent success rate for 10 children completing theprogram.Mina said that they believed ADHD was merely a failure of the brain to balance the "primitive reflexes" with whichwe are all born. She discussed how BrainTrain would test Klaus for these reflexes at the beginning of the programand again at the end of the 12-week program, and "without a doubt" Natasha would see improvement. Mina alsotold Natasha that the program consisted of a series of exercises that would be conducted at the center and thatNatasha would need to conduct at home. The exercises involved things like listening to sounds in only one ear ata time and doing sit-ups.Natasha thought the methodology seemed strange but was willing to give it a shot because she was exhaustedfrom trying other therapies. Mina asked Natasha for copies of her pay stubs because she said, "the amount wecharge for the program is dependent on each family's individual income, and we don't want any family to have togo without our services just because they couldn't afford the program."Natasha felt uncomfortable sharing her pay stubs, but relented, and Mina told Natasha the cost to her would be$6,000 for the 12-week program. Unbeknownst to Natasha, Mina actually worked on a commission, in which hersalary was directly proportional to the number of clients she enrolled and at what pay rate.Natasha paid the total amount up front, and Klaus began the program the following week when the initialevaluation test of Klaus was conducted. That same week, Klaus began his twice weekly sessions at the center.During the first two weeks of the program, Natasha noticed a dramatic worsening of Klaus's behavior. He becameagitated, hitting other family members and destroying furniture. Natasha raised her concerns with Mina andstated that she wanted to stop the program and have her money refunded. However, Mina assured her that itwas perfectly normal to see some "behavior dips" but that the program would work if she just stuck to it.Frustrated, Natasha left the BrainTrain office without saying anything else; however, she continued to take Klausto his sessions and diligently performed his at-home exercises.At the end of the 12 weeks, Klaus was re-tested. He showed no improvement from his initial scores and, in fact,had scored even worse in two areas. His teachers at school had reported that his behavior had been gettingworse, and he was more frequently in trouble. Natasha also continued to see Klaus's behavior worsen at home.Again, Natasha contacted BrainTrain and demanded a full refund as the program had not only been ineffectivebut had seemed to make Klaus's behavior worse. BrainTrain refused.

Answered: ad executed a written contract which…

ad executed a written contract which contained a liquidated damages clause for $200 in the event that BrainTrain breached,

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter11: Planning For Health Care Expenses

Section: Chapter Questions

Problem 2FPC

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