Question 1

Nominal damages are awarded when no financial loss resulted from the breach.

Accepted Answer

A) True 
 B)False

Question 2

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

Accepted Answer

A) Rescission 
B) Recession 
C) Restitution 
D) Retribution 
A) Rescission 
B) Recession 
C) Restitution 
D) Retribution

Question 3

A ________ is an order of the court that enables a government officer to seize property of the breaching party and sell it at auction 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 4

To be liable for consequential damages,the breaching party need not know nor have reason to know that the breach will cause special damages to the other party.

Accepted Answer

A) True 
 B)False

Question 5

Howard and Ali enter into a contract where Ali has to ship goods within six weeks of signing the contract.Two weeks into the contract,Ali informs Howard that he cannot provide the shipment on time.What type of contractual breach does this constitute? Suggest Howard's course of action following the breach of contract.

Accepted Answer

Ali's actions constitute an anticipatory

Question 6

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Accepted Answer

A) injunction 
B) writ of garnishment 
C) tender of performance 
D) writ of attachment 
A) injunction 
B) writ of garnishment 
C) tender of performance 
D) writ of attachment

Question 7

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?

Accepted Answer

A) tender of performance 
B) mitigation of damages 
C) liquidation of damages 
D) disclaimer of consequential damages 
A) tender of performance 
B) mitigation of damages 
C) liquidation of damages 
D) disclaimer of consequential damages

Question 8

To rescind a contract,the parties must make restitution of the consideration they received under the contract.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

________ 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 11

________ is an action to undo a contract.

Accepted Answer

A) Rescission 
B) Recession 
C) Restitution 
D) Retribution 
A) Rescission 
B) Recession 
C) Restitution 
D) Retribution

Question 12

Consequential damages are unforeseeable damages.

Accepted Answer

A) True 
 B)False

Question 13

Monetary damages can be recovered only for a material breach.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true of mitigation of damages?

Accepted Answer

A) The breaching party must make efforts to mitigate damages resulting from the breach of contract. 
B) If an employer breaches an employment contract, he or she owes a duty to mitigate damages by trying to find substitute employment for the employee. 
C) The extent of mitigation of damages required is common to all kinds of contracts. 
D) If an employer breaches a contract, the employee is only required to accept comparable employment. 
A) The breaching party must make efforts to mitigate damages resulting from the breach of contract. 
B) If an employer breaches an employment contract, he or she owes a duty to mitigate damages by trying to find substitute employment for the employee. 
C) The extent of mitigation of damages required is common to all kinds of contracts. 
D) If an employer breaches a contract, the employee is only required to accept comparable employment.

Question 15

In the event of a material breach,the nonbreaching party is discharged from further performance under the contract.

Accepted Answer

A) True 
 B)False

Question 16

Parties to a contract agree upon liquidated damages after the contract has been breached.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following torts arises when a third party induces a contracting party to breach the contract with another party?

Accepted Answer

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

Question 18

________ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Accepted Answer

A) Reformation 
B) Injunction 
C) Conjunction 
D) Garnishment 
A) Reformation 
B) Injunction 
C) Conjunction 
D) Garnishment

Question 19

Tender of performance discharges a party's contractual obligations.

Accepted Answer

A) True 
 B)False

Question 20

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Accepted Answer

A) Restitution 
B) Rescission 
C) Anticipatory repudiation 
D) Material breach 
A) Restitution 
B) Rescission 
C) Anticipatory repudiation 
D) Material breach

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

Nominal damages are awarded when no financial loss resulted from the breach.

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

A ________ is an order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgment.

To be liable for consequential damages,the breaching party need not know nor have reason to know that the breach will cause special damages to the other party.

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?

To rescind a contract,the parties must make restitution of the consideration they received under the contract.

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

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

________ is an action to undo a contract.

Consequential damages are unforeseeable damages.

Monetary damages can be recovered only for a material breach.

Which of the following statements is true of mitigation of damages?

In the event of a material breach,the nonbreaching party is discharged from further performance under the contract.

Parties to a contract agree upon liquidated damages after the contract has been breached.

Which of the following torts arises when a third party induces a contracting party to breach the contract with another party?

________ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Tender of performance discharges a party's contractual obligations.

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online 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 Crime

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

Digital Law and E-Commerce

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

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

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, real Property, and Insurance

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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