Question 1

Most courts hold that a seller of goods is NOT entitled to consequential damages.

Accepted Answer

A) True 
 B)False

Question 2

All Seasons,Inc.ordered $5,000 worth of Christmas decorations from Santa,Inc.The shipment of decorations was to arrive no later than October 1,but did not arrive until December 1.All Seasons was able to purchase some of the unfulfilled order through other suppliers,but had to pay 15% more than the price under contract with Santa,Inc.As a result of the delay,All Seasons' sales were down 25%.All Seasons can recover

Accepted Answer

A) punitive damages. 
B) nominal damages. 
C) compensatory damages and consequential damages. 
D) compensatory damages, consequential damages, and punitive damages. 
A) punitive damages. 
B) nominal damages. 
C) compensatory damages and consequential damages. 
D) compensatory damages, consequential damages, and punitive damages.

Question 3

Which of the following statements concerning liquidated damages is NOT TRUE?

Accepted Answer

A) A liquidated damages clause will be enforced, if, when the contract was made, it was difficult to estimate actual damages. 
B) The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. 
C) Nominal damages are not the same thing as liquidated damages. 
D) Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party. 
A) A liquidated damages clause will be enforced, if, when the contract was made, it was difficult to estimate actual damages. 
B) The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. 
C) Nominal damages are not the same thing as liquidated damages. 
D) Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

Question 4

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Accepted Answer

An injunction is a court order that requ

Question 5

Abigail signed a contract to purchase a new car from Wolf's Auto Sales Company.The seller breached its agreement by not delivering the car.Abigail went to another car dealer and purchased the same model of car at the same price.Although she had experienced a legal injury,Abigail has no actual financial or other damages as a result of the breach.If Abigail sues and wins,what type of damages will she be awarded?

Accepted Answer

Abigail will be awarded nominal damages.

Question 6

In a construction contract,there is a $1000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

Accepted Answer

This type of clause is known as a liquid

Question 7

The first step a court takes in choosing a remedy is to determine

Accepted Answer

A) what interest it is trying to protect. 
B) if the damages can be quantified with reasonable certainty. 
C) if punitive damages should be awarded. 
D) whether the injured party mitigated its damages. 
A) what interest it is trying to protect. 
B) if the damages can be quantified with reasonable certainty. 
C) if punitive damages should be awarded. 
D) whether the injured party mitigated its damages.

Question 8

Banner enters into a contract with Sylvia to buy her house for $150,000.Sylvia decides later not to sell because she is so emotionally attached to the house.Banner insists that he is entitled to the house.Banner can successfully sue for specific performance.

Accepted Answer

A) True 
 B)False

Question 9

Dr.Gonzalez ordered specialized surgical equipment from Physician's Supply Co.,but the company informed Dr.Gonzalez that it would not be able to meet his order by the agreed date.Even if Dr.Gonzalez does nothing to secure equipment from another source,he will be able to recover damages since the contract was breached by Physician's Supply,not Gonzalez.

Accepted Answer

A) True 
 B)False

Question 10

A contract clause which specifies the amount of damages to be paid in the event of a breach is called

Accepted Answer

A) a covenant of damages clause. 
B) a reliance interest of damages clause. 
C) a liquidated damages clause. 
D) an incidental damages clause. 
A) a covenant of damages clause. 
B) a reliance interest of damages clause. 
C) a liquidated damages clause. 
D) an incidental damages clause.

Question 11

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

Accepted Answer

A) True 
 B)False

Question 12

If a court awards nominal damages it will generally

Accepted Answer

A) award compensatory damages as well. 
B) not make a determination as to whether there has been a breach of the contract. 
C) award punitive damages for the intentional breach of the contract. 
D) award a very small amount of money. 
A) award compensatory damages as well. 
B) not make a determination as to whether there has been a breach of the contract. 
C) award punitive damages for the intentional breach of the contract. 
D) award a very small amount of money.

Question 13

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days.The parties negotiated and meant to say in the written agreement,delivery in 50 days.If the two cannot settle this dispute,and Archie still wants to deliver the champagne,then Archie should sue for the remedy of

Accepted Answer

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

Question 14

Specific performance is available when the subject matter of the contract is unique.

Accepted Answer

A) True 
 B)False

Question 15

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be considered

Accepted Answer

A) compensatory damages. 
B) incidental damages. 
C) consequential damages. 
D) punitive damages. 
A) compensatory damages. 
B) incidental damages. 
C) consequential damages. 
D) punitive damages.

Question 16

Ernest operates an ice cream stand during the months of May,June,July,and August.Ernest's ice cream machine is broken and needs a new part to run.He contracts to have the part shipped to him by special carrier.Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees,knowing that Ernest intends to open his stand May 1.If the shipper fails to deliver the part on April 25,Ernest will be able to recover consequential damages caused by the delay.

Accepted Answer

A) True 
 B)False

Question 17

Ralph is a professional football player.He signs a valid contract with the Jets.Later,the Giants offer him more money,so he signs a contract with them.If the Jets sue Ralph,what would the most likely result be?

Accepted Answer

A) The court will order Ralph to play with the Jets. 
B) The court will order Ralph to play with the Jets, but Ralph is entitled to be paid the amount he negotiated under the Giants contract. 
C) The court will issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit. 
D) The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts. 
A) The court will order Ralph to play with the Jets. 
B) The court will order Ralph to play with the Jets, but Ralph is entitled to be paid the amount he negotiated under the Giants contract. 
C) The court will issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit. 
D) The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts.

Question 18

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in

Accepted Answer

A) Bi-Economy Market, Inc.v.Harleysville Ins.Co.of New York. 
B) Putnam Construction & Realty Co. v. Byrd. 
C) Hadley v. Baxendale. 
D) Toscano v. Greene Music. 
A) Bi-Economy Market, Inc.v.Harleysville Ins.Co.of New York. 
B) Putnam Construction & Realty Co. v. Byrd. 
C) Hadley v. Baxendale. 
D) Toscano v. Greene Music.

Question 19

Generally,reasonable liquidated damage clauses will be enforced

Accepted Answer

A) when actual damages are easily determined. 
B) when actual damages are difficult to determine. 
C) almost always. 
D) only in real estate sales contracts. 
A) when actual damages are easily determined. 
B) when actual damages are difficult to determine. 
C) almost always. 
D) only in real estate sales contracts.

Question 20

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?

Accepted Answer

A) The costs of psychological counseling. 
B) The costs of mailing resumes to prospective employers. 
C) The costs of a new wardrobe for future interviews. 
D) The costs of cosmetic surgery. 
A) The costs of psychological counseling. 
B) The costs of mailing resumes to prospective employers. 
C) The costs of a new wardrobe for future interviews. 
D) The costs of cosmetic surgery.

Exam 19: Remedies

Most courts hold that a seller of goods is NOT entitled to consequential damages.

Which of the following statements concerning liquidated damages is NOT TRUE?

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

In a construction contract,there is a $1000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

The first step a court takes in choosing a remedy is to determine

Banner enters into a contract with Sylvia to buy her house for $150,000.Sylvia decides later not to sell because she is so emotionally attached to the house.Banner insists that he is entitled to the house.Banner can successfully sue for specific performance.

A contract clause which specifies the amount of damages to be paid in the event of a breach is called

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

If a court awards nominal damages it will generally

Specific performance is available when the subject matter of the contract is unique.

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be considered

Ralph is a professional football player.He signs a valid contract with the Jets.Later,the Giants offer him more money,so he signs a contract with them.If the Jets sue Ralph,what would the most likely result be?

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in

Generally,reasonable liquidated damage clauses will be enforced

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?

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

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Consideration

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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

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Life and Death of a Corporation

Management Duties

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Real Property and Landlord Tenant

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Planning for the Future: Estates and Insurance

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