Question

A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is referred to as a(n) _________.

Answer 1

Answer:

Escalator clause

Explanation:

A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is referred to as an escalator clause.

Escalator clause: It is a legal clause that allows automatically an increase in the wage or price. These clauses are kept in a contract under certain conditions. It ties the price or wages with the inflation rate, which protects the buyer and seller from loss. It also controls the price of goods and services.