Final answer:
Caroline, according to the terms of the syllabus, which acts as a contract, will receive a grade deduction for exceeding the permitted absences; therefore, her final grade appropriately drops from a 98 to an 88.
Step-by-step explanation:
If we consider the syllabus in David's Business Law class to be a contract between the teacher and the student, then Caroline, despite having a 98 average, would be subject to the agreed-upon attendance policy stipulated within that syllabus.
Since one of the requirements to earn an "A" in the class includes complying with the attendance policy, Caroline's 5 absences exceed the allowed number of absences (which is 3) for any reason, and therefore, it is legitimate for 10 points to be deducted from her final grade.
This points deduction would result in her receiving a final grade of 88, as per the conditions outlined in the syllabus, which serves as the guiding contract between the student and the instructor regarding course policies and expectations.