Question 1

________ place the nonbreaching party in the same position as if the contract had been fully performed.

Accepted Answer

A) Tort damages 
B) Compensatory damages 
C) Nominal damages 
D) Consequential damages 
A) Tort damages 
B) Compensatory damages 
C) Nominal damages 
D) Consequential damages

Question 2

Kinetosphere Automation Inc.(K.A.)makes a mandatory employment contract with all its employees.The contract states that K.A.'s employees are not to work for any other organization while they are employed by it.If K.A.finds an employee who is also serving another company,it can approach the court to obtain a(n)________ to prevent the employee from working in the other company.

Accepted Answer

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

Question 3

How are liquidated damages awarded?

Accepted Answer

Under certain circumstances,the parties

Question 4

Andrew is employed as a chief financial officer of EasyMoney in New York City,for a salary of $200,000 per year on a three-year contract.His employer terminates Andrew with two years left on the contract.Andrew accepts employment as a financial analyst at a different firm that pays $150,000 per year.Which of the following hold true in this scenario?

Accepted Answer

A) Andrew cannot take any legal action against his prior employer after accepting another job. 
B) Andrew's prior employer must pay Andrew two years' worth of his previous salary. 
C) Andrew can only sue to receive nominal damages. 
D) Andrew can sue his prior employer and recover $100,000. 
A) Andrew cannot take any legal action against his prior employer after accepting another job. 
B) Andrew's prior employer must pay Andrew two years' worth of his previous salary. 
C) Andrew can only sue to receive nominal damages. 
D) Andrew can sue his prior employer and recover $100,000.

Question 5

Mitigation of damages is a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract.

Accepted Answer

A) True 
 B)False

Question 6

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100,000 a year.Two years into the contract,Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

Accepted Answer

A) Any job that offers $100,000 or more a year. 
B) Another software applications developer job, irrespective of the salary. 
C) A job in any software firm in any part of the country. 
D) An applications developer job in San Jose for $100,000 a year or more. 
A) Any job that offers $100,000 or more a year. 
B) Another software applications developer job, irrespective of the salary. 
C) A job in any software firm in any part of the country. 
D) An applications developer job in San Jose for $100,000 a year or more.

Question 7

How are compensatory damages awarded for construction contracts?

Accepted Answer

The compensatory damages recoverable for

Question 8

Which of the following statements is true of nominal damages?

Accepted Answer

A) They are also known as compensatory damages. 
B) Only damages above $1,000 can qualify as nominal damages. 
C) Most courts favor nominal damages lawsuits. 
D) They are awarded even when a breach did not result in financial loss. 
A) They are also known as compensatory damages. 
B) Only damages above $1,000 can qualify as nominal damages. 
C) Most courts favor nominal damages lawsuits. 
D) They are awarded even when a breach did not result in financial loss.

Question 9

In an anticipatory breach,the nonbreaching party does not have the right to sue the breaching party until performance is due.

Accepted Answer

A) True 
 B)False

Question 10

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 some of the conditions of 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 11

Which of the following statements is 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 12

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) Specific performance exempts works of art, antiques, and heirlooms as subject matter. 
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) Specific performance exempts works of art, antiques, and heirlooms as subject matter. 
D) Specific performance is not available to enforce land contracts.

Question 13

Which of the following constitutes material breach?

Accepted Answer

A) inferior performance 
B) substantial performance 
C) anticipatory repudiation 
D) rescission without notification 
A) inferior performance 
B) substantial performance 
C) anticipatory repudiation 
D) rescission without notification

Question 14

Restitution is an action to undo a contract.

Accepted Answer

A) True 
 B)False

Question 15

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 16

If the employee breaches the contract,the employer can recover the costs to hire a new employee.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of discharge of contracts?

Accepted Answer

A) Anticipatory breach discharges the breaching party's obligations to the contract. 
B) Substantial performance is sufficient to discharge a contract. 
C) Tender of performance discharges a party's contractual obligations. 
D) Tender is a conditional offer by contracting party to perform his or her obligations under the contract. 
A) Anticipatory breach discharges the breaching party's obligations to the contract. 
B) Substantial performance is sufficient to discharge a contract. 
C) Tender of performance discharges a party's contractual obligations. 
D) Tender is a conditional offer by contracting party to perform his or her obligations under the contract.

Question 18

The return of goods or property received from the other party to rescind a contract is known as restitution.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Writ of garnishment 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) True 
 B)False

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

________ place the nonbreaching party in the same position as if the contract had been fully performed.

How are liquidated damages awarded?

Mitigation of damages is a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract.

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100,000 a year.Two years into the contract,Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

How are compensatory damages awarded for construction contracts?

Which of the following statements is true of nominal damages?

In an anticipatory breach,the nonbreaching party does not have the right to sue the breaching party until performance is due.

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

Which of the following is true of specific performance?

Which of the following constitutes material breach?

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.

If the employee breaches the contract,the employer can recover the costs to hire a new employee.

Which of the following statements is true of discharge of contracts?

The return of goods or property received from the other party to rescind a contract is known as restitution.

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

Writ of garnishment 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.

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

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