Question 1

How are liquidated damages awarded?

Accepted Answer

Under certain circumstances, the parties

Question 2

Restitution is an action to undo a contract.

Accepted Answer

A) True 
 B)False

Question 3

Kinlin, a furniture retailer has a contract with William Luellin, a carpenter.The agreement states that Luellin must deliver five tables and that Kinlin would pay $2, 000 per table.However, Luellin manages to deliver only four tables and Kinlin needs to buy the fifth table from another supplier for $3, 000.How much money can Kinlin recover from Luellin?

Accepted Answer

A) $10, 000 
B) $2, 000 
C) $3, 000 
D) $1, 000 
A) $10, 000 
B) $2, 000 
C) $3, 000 
D) $1, 000

Question 4

A contractor cannot recover the profits he or she would have made on the contract if the owner breaches the construction contract before construction begins.

Accepted Answer

A) True 
 B)False

Question 5

A(n)________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

Accepted Answer

A) material 
B) minor 
C) anticipatory 
D) defensive 
A) material 
B) minor 
C) anticipatory 
D) defensive

Question 6

A ________ is an order of the court that orders that wages, bank accounts, or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgment.

Accepted Answer

A) writ of attachment 
B) writ of garnishment 
C) specific performance 
D) liquidation of damages 
A) writ of attachment 
B) writ of garnishment 
C) specific performance 
D) liquidation of damages

Question 7

An award of ________ orders the breaching party to perform the acts promised in a contract.

Accepted Answer

A) reformation 
B) injunction 
C) restitution 
D) specific performance 
A) reformation 
B) injunction 
C) restitution 
D) specific performance

Question 8

Monetary damages can be recovered only for material breach.

Accepted Answer

A) True 
 B)False

Question 9

When does a minor breach occur?

Accepted Answer

A) when a party rescinds the contract before actual work on the contract has commenced 
B) when a party renders substantial performance of his or her contractual duties 
C) when the party who is being offered goods or services rescinds the contract 
D) when the party who is offering goods or services rescinds the contract 
A) when a party rescinds the contract before actual work on the contract has commenced 
B) when a party renders substantial performance of his or her contractual duties 
C) when the party who is being offered goods or services rescinds the contract 
D) when the party who is offering goods or services rescinds the contract

Question 10

Which of the following is true of specific performance?

Accepted Answer

A) Specific performance of personal service contracts is not granted. 
B) Specific performance is not awarded if the subject matter of the contract is unique. 
C) Works of art, antiques and heirlooms are exempted as subject matter for specific performance. 
D) Specific performance is not available to enforce land contracts. 
A) Specific performance of personal service contracts is not granted. 
B) Specific performance is not awarded if the subject matter of the contract is unique. 
C) Works of art, antiques and heirlooms are exempted as subject matter for specific performance. 
D) Specific performance is not available to enforce land contracts.

Question 11

Nett Labs orders 30 desktop computers from iDeal, a local computer dealer.Nett Labs requires that each computer has a 2.6 GHz processor, 500 GB hard disk and Windows operating system.iDeal supplies 30 desktop computers, each with a 2 GHz processor, 500 GB hard disk and Windows operating system.Which of the following terms hold true for iDeal's performance?

Accepted Answer

A) complete performance 
B) material breach 
C) substantial performance 
D) anticipatory breach 
A) complete performance 
B) material breach 
C) substantial performance 
D) anticipatory breach

Question 12

Material breach of a contract occurs when a party renders considerable performance of his or her contractual obligations.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is a true of a breach of contract?

Accepted Answer

A) Strict performance by a party discharges that party's duties under the contract. 
B) Inferior performance constitutes a minor breach of contract. 
C) Substantial performance constitutes a material breach. 
D) The most common remedy for a breach of contract is an award of equitable remedies. 
A) Strict performance by a party discharges that party's duties under the contract. 
B) Inferior performance constitutes a minor breach of contract. 
C) Substantial performance constitutes a material breach. 
D) The most common remedy for a breach of contract is an award of equitable remedies.

Question 14

Kimberly Inc., a jewelry store, and JKCent, a retailer, draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However, the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

Accepted Answer

A) restitution 
B) rescission 
C) injunction 
D) reformation 
A) restitution 
B) rescission 
C) injunction 
D) reformation

Question 15

________ damages are awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach.

Accepted Answer

A) Consequential 
B) Compensatory 
C) Nominal 
D) Liquidated 
A) Consequential 
B) Compensatory 
C) Nominal 
D) Liquidated

Question 16

An injunction is an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Accepted Answer

A) True 
 B)False

Question 17

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Accepted Answer

A) nominal 
B) compensatory 
C) liquidated 
D) consequential 
A) nominal 
B) compensatory 
C) liquidated 
D) consequential

Question 18

Alan is a subject matter expert for First University, with an employment contract of three years.Two years into the contract, Second University-fully aware of Alan's contract-offers him twice the money he currently makes for a similar post.Alan takes the job.First University can recover damages from Second University for which of the following torts?

Accepted Answer

A) malicious breach of contractual relations 
B) malicious inducement of contractual breach 
C) intentional interference with contractual relations 
D) breach of the covenant of good faith and fair dealing 
A) malicious breach of contractual relations 
B) malicious inducement of contractual breach 
C) intentional interference with contractual relations 
D) breach of the covenant of good faith and fair dealing

Question 19

Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1, 000 for shoveling the snow from his driveway throughout winter.Jenson, who was paid before work commenced, breached the contract on the very first day.He should refund $1, 000 to Johnson as ________.

Accepted Answer

A) compensatory damages 
B) restitution 
C) liquidated damages 
D) consequential damages 
A) compensatory damages 
B) restitution 
C) liquidated damages 
D) consequential damages

Question 20

Strict performance by a party discharges that party's duties under the contract.

Accepted Answer

A) True 
 B)False

Exam 16: Remedies for Breach of Traditional and E-Contracts

How are liquidated damages awarded?

Restitution is an action to undo a contract.

A contractor cannot recover the profits he or she would have made on the contract if the owner breaches the construction contract before construction begins.

A(n)________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

A ________ is an order of the court that orders that wages, bank accounts, or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgment.

An award of ________ orders the breaching party to perform the acts promised in a contract.

Monetary damages can be recovered only for material breach.

When does a minor breach occur?

Which of the following is true of specific performance?

Material breach of a contract occurs when a party renders considerable performance of his or her contractual obligations.

Which of the following statements is a true of a breach of contract?

Kimberly Inc., a jewelry store, and JKCent, a retailer, draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However, the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

________ damages are awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach.

An injunction is an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1, 000 for shoveling the snow from his driveway throughout winter.Jenson, who was paid before work commenced, breached the contract on the very first day.He should refund $1, 000 to Johnson as ________.

Strict performance by a party discharges that party's duties under the contract.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

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