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The manual says that when an army is attacked army by land or air that it loses 10% readiness.

An army could be Interdicted twice in a single turn and then attacked once or more by land ...al in the same turn.

Question: Does the attacked army lose 10% everytime it is attacked or a max of 10% for that week? I also assume that each unit within the army loses the 10% from its own current readiness level?

It would be 10% of the current readiness level, rather than current readiness minus 10%. For example, if the readiness is 90%, a 10% drop would put it at 81%. Multiple drops are possible. However, there is a bug right now that results in divisions not having any readiness drop at all from combat, only movement.

Thx Rick ... did not even there was a bug. My current opponent asked me and I was not sure. I'm quite a newbie ..on my third PBEM ...he is on his first.

By the way is the 10% loss for retreating operational??

Movement is resulting in readiness loss as it should. I am sure it does not match what is in the manual for readiness loss, but it is happening as it should for everything but combat.