Question 1

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 2

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy.Neal is able to sell the 500 pairs to Renny for a much lower amount.Neal then sues Solomon for damages.Neal will be able to recover:

Accepted Answer

A) the amount in the liquidated damages clause. 
B) the difference between Solomon's contract price and the amount paid by Renny. 
C) Solomon's contract price. 
D) an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else. 
A) the amount in the liquidated damages clause. 
B) the difference between Solomon's contract price and the amount paid by Renny. 
C) Solomon's contract price. 
D) an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else.

Question 3

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

Accepted Answer

A) Shirley must return the baseball card. 
B) Nala must return the $450. 
C) Both a and b 
D) Neither a nor b. 
A) Shirley must return the baseball card. 
B) Nala must return the $450. 
C) Both a and b 
D) Neither a nor b.

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.Wellington:

Accepted Answer

A) has at least four remedies under the UCC. 
B) may resell the goods to someone else and,if it sues Mulligan,Wellington will be assured of being awarded the difference between the original contract price with Mulligan and the price received from the resale. 
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 goods to someone else and,if it sues Mulligan,Wellington will be assured of being awarded the difference between the original contract price with Mulligan and the price received from the resale. 
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

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 6

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.

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

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy.Neal is able to sell the 500 pairs to Renny for a much lower amount.Neal then sues Solomon for damages.Neal will be able to recover:

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

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.Wellington:

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

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Torts and Product Liability

Crime

International Law

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third parties

Performance and Discharge

practical Contracts

Introduction to Sales

Ownership and Warranties

Performance and Remedies

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency

Employment and Labor Law

Employment and Discrimination

Starting a Business

Corporations

Government Regulations:Securities and Antitrust

Consumer Protection

Cyberlaw

Intellectual Property

Real and Personal Property

Filters

Exam 17: Remedies

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

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy.Neal is able to sell the 500 pairs to Renny for a much lower amount.Neal then sues Solomon for damages.Neal will be able to recover:

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

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.Wellington:

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

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Torts and Product Liability

Crime

International Law

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third parties

Performance and Discharge

practical Contracts

Introduction to Sales

Ownership and Warranties

Performance and Remedies

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency

Employment and Labor Law

Employment and Discrimination

Starting a Business

Corporations

Government Regulations:Securities and Antitrust

Consumer Protection

Cyberlaw

Intellectual Property

Real and Personal Property

Filters