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The article addresses the question of whether one can terminate a global distribution system (GDS) contract when the travel agency is sold. Information is presented on the terms of the standard form contracts. The potential liability facing a company when the agency is sold without having the buyer assume the contract is discussed, along with the opportunities presented by lower productivity quotas and penalties to the seller.

The article explains the concept of liquidated damages. Liquidated damages is used in hotel contracts wherein a company planning to hold a meeting at the hotel agrees in advance to pay the damages if the event is cancelled. The concept is an approximate of the hotel's lost profits or the amount that it would have netted had the meeting been held.

The article reports on the penalty paid by Airbus to Qantas Airways for the delay in the delivery of the A380 aircraft. Qantas will receive A$104 million ($79 million) in damages from Airbus for delays in deliveries to its 12 firm-ordered A380s. Malaysia Airlines and Gulf Air have agreed to codeshare on flights between Kuala Lumpur and the Middle East.

The article reports on the A$104 billion in liquidated damages that will be received by Qantas from Airbus relating to the late delivery of its A380s. The figure was made public in the airline's annual results for the year ended June 30, 2006, which saw a 26.6% fall in pre-tax profit to A$671 million, attributed largely to a A$1.1 billion increase in fuel costs. Qantas chief executive Geoff Dixon says the damages will be paid to the airline over several years based on the final payment for aircraft by the carrier.

The article focuses on the dispute between Botes Building Ltd. and Hillview Industrial Developments for the Park Royal project in London, England. Botes Building has been told to pay Hillview Industrial Developments liquidated damages for failing to comply with the completion date. It did not pay but instead made a counterclaim against Hillview. Botes, however, lost the case and paid the damages to Hillview.

The article presents information on investor-owned utilities who would be sharing a part of their load with renewable energy upto a specified time period in California. Failure to meet the renewable power will be subject to financial and regulatory penalties. If a utility fails to meet its obligations, it should present evidence of the failure to its regulator to retard the financial or regulatory penalty. Most of the power-purchase agreements impose hefty financial penalties if a facility fails to satisfy minimum performance requirements.

This article discusses a bill passed by the U.S. Senate Banking Committee focused on reforming the National Flood Insurance Program. The banking industry remains opposed to the bill because it would not set a cap on penalties lenders could pay for failing to insure that borrowers obtained required flood insurance.

The article reports on the plan by Balfour Beatty PLC to appeal the fines imposed against it by a British judge for its part in the 2000 rail crash in Hatfield, England. Contractor Balfour Beatty is to appear in the High Court to appeal the record £10 million fine handed out for its part in the 2000 Hatfield rail crash which killed four people. Company executives regard the punishment for health and safety breaches as too harsh.

The article looks at Visa U.S.A.'s consideration of imposing a fine on Bank of America Corporation in response to a recent data breach involving hundreds of thousands of compromised customer personal identification numbers. The most Visa can charge an acquirer for a merchant's noncompliance is $500,000. The February 2006 breach likely occurred at a large office-supplies retailer that was improperly storing customer data in violation of the Payment Card Industry standards.

The article reports that a 25 billion-dollar offer was made by Boston Scientific Corp. on Guidant Corp. in replacement of its agreement to Johnson & Johnson in the U.S. The decision of Boston was made after it was convinced that Johnson was undervaluing Guidant. According to Boston, the acquisition will make the company number one in making cardiovascular device. But to carry out the process, Guidant must terminate the acquisition agreement with Johnson and pay the 700 million dollars penalty fee.

Reports that Czech Republic agrochemical firm Agrofert has claimed a contractual penalty from Polish group PKN Orlen SA for its failure to comply with the terms of a deal struck by its previous management over key Unipetrol AS assets. Worth of the penalty; Issue concerning the deal; Impact of any major sale of Unipetrol's petrochemical assets to Agrofert on Orlen.

Reports on the amount of the contractual penalty claimed by Czech agrochemicals firm Agrofert from Polish group PKN Orlen for failure to comply with the terms of deal made by former Orlen management over key Unipetrol assets. Allegations against the former Orlen management regarding the purpose of the sale of Unipetrol assets to Agrofert; Implications of any major sale of Unipetrol's petrochemical assets to Agrofert; Risk associated with the prospect of Agrofert's acquisition of Unipetrol according to analyst Bram Buring.

Addresses a question on identifying and calculating liquidated damages. Coverage of the U.S. government's contract law; Factors to consider in calculating liquidated damages; Standard contract for calculating liquidated damages.

Focuses on two studies by the National Home Equity Mortgage Association that were conducted by Richard F. Demong and James E. Burroughs, using Home Mortgage Disclosure Act data. Details of the study on risk-based pricing that found differences in mortgage rates result from differences in risk; Finding of the study on prepayment penalties that lower rates are given to consumers with this type of loan; How the NHEMA research supports the Ney-Kanjorski bill for setting federal standards for subprime lending; Views of the trade group's general counsel, Maury Shevin.

The article reports that two Citigroup Inc. subsidiaries have been ordered to pay $208 million in penalties and disgorgement. Also take substantial remedial steps, to settle fraud charges over failing to disclose to municipal and other mutual funds that they had a transfer agent arrangement that allowed them to reap millions of dollars at the funds' expense. Both subsidiaries Smith Barney Fund Management LLC, an investment adviser and Citigroup Global Markets Inc., an investment adviser and broker-dealer agreed to disgorge $128 million in ill-gotten gains and prejudgment interest.

Focuses on the case of Alfred McAlpine vs Tilebox which gives helpful guidance about how the court in England tests whether a high level of liquidated damages stipulated in a contract make a particular provision a penalty and therefore unenforceable. Ruling of the court that for a pre-estimated sum in damages to be enforceable, it has to be reasonable; Potential losses of Tilebox; Enumeration of the grounds to consider that a liquidated damages clause not a penalty.

Provides information on a new entrant global distribution system (GDS) bookings introduced in 2005 that would require the switch away from Sabre, Galileo, Worldspan or Amadeus in order to help travel agents regarding their GDS decisions. Penalties imposed by Sabre contracts for agencies that do not achieve bookings quota; Benefits derived by travel agencies from signing a long-term contract.

Presents the results of a study on prepayment penalties in subprime lending. Findings of a study by the Center for Responsible Lending which criticise the use of prepayment penalties; Evidence that residents of minority neighborhoods disproportionately pay penalties; Complaints of activists against subprime lending practices; Comments of Mark Pearce, president of the Center for Responsible Lending; Objections to the study's findings from several lending industry leaders.

The article reports that Comcast Cable Communications Inc. owes PacifiCorp US$3.8 million, consisting of a $900,000 share of audit expenses and $2.9 million to cover penalties and back rent for unauthorized attachments on 38,919 poles. Utah's decision is remarkable, not only for the size of the award but also because: It approved the contract's $60 per year unauthorized attachment fee, rejecting Comcast's claim that the contract was one of adhesion. Also, it rejected PacifiCorp's 1997/98 audit as a baseline from which unauthorized attachments could be counted, largely because verifiable audit records were unavailable.

The article reports on liquidated damage clause and limitation of liability in alarm contracts. Frequently, the provisions for the liquidated damage clause and limitation of liability in alarm contracts come under scrutiny. The United States District Court of the District of New Jersey recently upheld an exculpatory clause in a customs broker agreement. The clause was inserted to hold the customs broker blameless if a loss resulted. The court determined that under New Jersey law, the terms of the contract were spelled out in plain and clear language in each of more than 100 transactions between the parties. Simply because the information was listed on the back of an invoice did not undermine its clarity, the court pointed out.

Temporary and final regulations were released on the information reporting requirements and penalties, as well as backup withholding requirements, for payment card transactions. Final regulations were released relating to the Section 904(d) foreign tax credit limitation, and to the exclusion of certain export financing interest from foreign personal holding company income. The regulations have various effective dates, but generally are applicable for taxable years beginning on or after July 20, 2004.

Reports on the fine that Czech aircraft manufacturer Aero Vodochody will pay to the Czech ministry of defense for the late delivery of its L-159 subsonic fighters. Amount of the fine; Comment from Aero vice president for sales and marketing Viktor Kucera on the delay; Reason for the delay of the aircraft delivery.

Reports that a group of U.S. regulators has signed a $1.4 billion agreement with nation's largest investment banks to settle a joint investigation into conflicts of interest. Decision regarding monetary penalties; Changes agreed upon by investment banks; Regulators that joined the deal; Graph showing companies that will pay the penalty.

Discusses whether a travel agency will pay penalties to its GenerationDataset vendor which agreed to de-install its cathode ray tubes and claims of lost business resulting from the sale of the agency. Purpose of the claims; Arguments on the possibility of claims for future lost of bookings; Factors which influence the contention for claims by vendors.

Focuses on the home building industry in Florida. Introduction of senator Betty Holzendorf and representative Frank Peterman on home construction penalties; Subject of penalties for delivery dates of homes; Support of American Homebuyers Association president Richard J. Roll on the legislation.

Reports on the addition of clauses into licensing and outsourcing contracts by information technology managers as protection against the business failures of technology suppliers. Actions taken by Nationwide Mutual Insurance Co.; Effect of the 2001 economic downturn; Remarks from Jeff Hessenius, business manager at the state of Arizona's Government Information Technology Agency.

Reports the impact of prepayment penalties to mortgages on consumers. Call for government intervention to provide basic information for consumers on repayment penalties; Effects of prohibition of repayment penalties; Significant risk posed to lenders.

Reports on the penalties to be faced by travel agents upon failure to meet monthly contracts targets in the United States. Booking of the minimum number of air segments; Productivity pricing; Difficulties in meeting the target.

Reports on hotels' stricter enforcement of attrition and cancellation clauses on contracts. Onset of the industry crackdown; Risks posed by contracts without clauses on meeting planners; Penalties for lost food and beverage (F&B) revenue; Negotiation of terms with hoteliers.