Question 1

The expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations.

Accepted Answer

A) True 
 B)False  True

Question 2

The remedy of reformation

Accepted Answer

A) applies only when money damages are inadequate. 
B) can be used to correct mistakes in the original contract. 
C) is available only if fraud is involved. 
D) is a commonly used remedy. 
A) applies only when money damages are inadequate. 
B) can be used to correct mistakes in the original contract. 
C) is available only if fraud is involved. 
D) is a commonly used remedy. B

Question 3

Expectation interest can best be described as money spent in reliance upon the agreement.

Accepted Answer

A) True 
 B)False  False

Question 4

Mulligan Domestics Co.breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills,although the fabric met the contract specifications.In this situation,Wellington Mills

Accepted Answer

A) has at least four remedies under the UCC. 
B) may resell the fabric to someone else and, if it sues Mulligan, Wellington Mills will be awarded the full contract price. 
C) may choose not to resell the fabric and settle for the difference between the contract price and the market value. 
D) would be awarded consequential damages by most courts. 
A) has at least four remedies under the UCC. 
B) may resell the fabric to someone else and, if it sues Mulligan, Wellington Mills will be awarded the full contract price. 
C) may choose not to resell the fabric and settle for the difference between the contract price and the market value. 
D) would be awarded consequential damages by most courts.

Question 5

To "undo" a contract and put the parties where they were before they made the agreement is called

Accepted Answer

A) restitution. 
B) rescission. 
C) reliance. 
D) remediation. 
A) restitution. 
B) rescission. 
C) reliance. 
D) remediation.

Question 6

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes.If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad,then this action would be considered

Accepted Answer

A) a reasonable mitigation of damages. 
B) an attempt to maximize damages. 
C) an attempt to realize an unwarranted profit. 
D) an attempt at reformation. 
A) a reasonable mitigation of damages. 
B) an attempt to maximize damages. 
C) an attempt to realize an unwarranted profit. 
D) an attempt at reformation.

Question 7

To ________ means to make a good faith purchase of goods similar to those in the contract.

Accepted Answer

A) reform 
B) expect 
C) cover 
D) resolve 
A) reform 
B) expect 
C) cover 
D) resolve

Question 8

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.

Accepted Answer

A) True 
 B)False

Question 9

In breach of the partnership agreement,Trimble,a partner in the partnership of Morris,Newt,and Oppie,Ltd.quits the partnership and goes to work for a competitor.The former partners may ask the court for

Accepted Answer

A) specific performance requiring Trimble to return to work for Morris, Newt, and Oppie, Ltd. 
B) an injunction to prevent Trimble from working in competition with the former partners. 
C) special damages under the rule of Hadley v. Baxendale. 
D) liquidated damages as compensation for the breach. 
A) specific performance requiring Trimble to return to work for Morris, Newt, and Oppie, Ltd. 
B) an injunction to prevent Trimble from working in competition with the former partners. 
C) special damages under the rule of Hadley v. Baxendale. 
D) liquidated damages as compensation for the breach.

Question 10

Under the UCC,the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

Accepted Answer

A) True 
 B)False

Question 11

Specific performance may be available for the breach of a contract to sell

Accepted Answer

A) an original painting. 
B) 20 shares of WalMart stock. 
C) a Nintendo WII video game system. 
D) a 2007 Mustang in mint condition. 
A) an original painting. 
B) 20 shares of WalMart stock. 
C) a Nintendo WII video game system. 
D) a 2007 Mustang in mint condition.

Question 12

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

Accepted Answer

A) True 
 B)False

Question 13

The goal of expectation interest is to

Accepted Answer

A) serve as a penalty for breaching a contract. 
B) award damages under the UCC when the sale of goods is the subject of the contract. 
C) put the non-breaching party in the position it would have been in had the contract never been formed. 
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached. 
A) serve as a penalty for breaching a contract. 
B) award damages under the UCC when the sale of goods is the subject of the contract. 
C) put the non-breaching party in the position it would have been in had the contract never been formed. 
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached.

Question 14

Reformation is

Accepted Answer

A) a type of restitution. 
B) the most common of all remedies. 
C) a form of quasi-contract. 
D) the least common of all remedies. 
A) a type of restitution. 
B) the most common of all remedies. 
C) a form of quasi-contract. 
D) the least common of all remedies.

Question 15

Larry purchased a Leisure Lawnmower because the company salesperson intentionally misled him by assuring him that the mower was self-propelled,had a mulching feature,and had a five-year unlimited manufacturer's warranty.When Fred finds out that his new Leisure Lawnmower is not self-propelled,does not mulch,and has a 90-day warranty,he may successfully sue for

Accepted Answer

A) reformation of the contract only. 
B) restitution only. 
C) restitution and possibly punitive damages. 
D) compensatory damages only. 
A) reformation of the contract only. 
B) restitution only. 
C) restitution and possibly punitive damages. 
D) compensatory damages only.

Question 16

The Milicic v.Basketball Marketing Company,Inc.case illustrated the proper use of a preliminary injunction.

Accepted Answer

A) True 
 B)False

Question 17

Bob,a house builder,contracts with Ollie to build a house on Ollie's lot.The total price of the construction is $100,000,$20,000 of which will be Bob's profit.After Bob has put $10,000 worth of materials into the house,Ollie wrongfully refuses to let him finish the house.If Bob sues for damages,he will be able to collect

Accepted Answer

A) $10,000. 
B) $20,000. 
C) $30,000. 
D) $100,000. 
A) $10,000. 
B) $20,000. 
C) $30,000. 
D) $100,000.

Question 18

Identify and describe the four principal contract interests a court may seek to protect.

Accepted Answer

The four principal contract interests a

Question 19

Under the UCC,if a seller of goods breaches the contract,the buyer

Accepted Answer

A) must "cover." 
B) may receive only the current market value of the goods. 
C) may "cover" and then receive the difference between the original contract price and the "cover" price. 
D) will be awarded the difference between the original contract price and the market value of the goods if the buyer chooses to "cover." 
A) must "cover." 
B) may receive only the current market value of the goods. 
C) may "cover" and then receive the difference between the original contract price and the "cover" price. 
D) will be awarded the difference between the original contract price and the market value of the goods if the buyer chooses to "cover."

Question 20

To win expectation damages,the injured party must prove the breach of contract caused damages that can be quantified with reasonable certainty.

Accepted Answer

A) True 
 B)False

Exam 19: Remedies

The expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations.

The remedy of reformation

Expectation interest can best be described as money spent in reliance upon the agreement.

Mulligan Domestics Co.breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills,although the fabric met the contract specifications.In this situation,Wellington Mills

To "undo" a contract and put the parties where they were before they made the agreement is called

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes.If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad,then this action would be considered

To ________ means to make a good faith purchase of goods similar to those in the contract.

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.

In breach of the partnership agreement,Trimble,a partner in the partnership of Morris,Newt,and Oppie,Ltd.quits the partnership and goes to work for a competitor.The former partners may ask the court for

Under the UCC,the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

Specific performance may be available for the breach of a contract to sell

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

The goal of expectation interest is to

Reformation is

The Milicic v.Basketball Marketing Company,Inc.case illustrated the proper use of a preliminary injunction.

Identify and describe the four principal contract interests a court may seek to protect.

Under the UCC,if a seller of goods breaches the contract,the buyer

To win expectation damages,the injured party must prove the breach of contract caused damages that can be quantified with reasonable certainty.

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Cyberlaw and Privacy

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance, Breach and Discharge

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: LLCs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant

Personal Property and Bailment

Planning for the Future: Estates and Insurance

Filters