Question 1

Liquidated damages are awarded only if actual damages are precisely determined.

Accepted Answer

A) True 
 B)False

Question 2

Alan is a subject matter expert for First University,with an employment contract of three years.Two years into the contract,Second University-fully aware of Alan's contract-offers him twice the compensation for a similar post.Alan breaches his contract and takes up the offer.First University can recover damages from Second University for which of the following torts?

Accepted Answer

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

Question 3

The amount of compensatory damages that will be awarded for breach of contract depends on which party breached the contract.

Accepted Answer

A) True 
 B)False

Question 4

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Accepted Answer

A) nominal 
B) compensatory 
C) liquidated 
D) consequential 
A) nominal 
B) compensatory 
C) liquidated 
D) consequential

Question 5

Kimberly Inc.,a jewelry manufacturer,and JKCent,a retailer,draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However,the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

Accepted Answer

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

Question 6

A nonbreaching party cannot rescind the contract in the event of a material breach.

Accepted Answer

A) True 
 B)False

Question 7

A ________ is an order of the court that orders that wages,bank accounts,or other property of the breaching party held by third persons be paid to the nonbreaching party 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 8

Specific performance of personal service contracts is not granted.

Accepted Answer

A) True 
 B)False

Question 9

Mary buys a new toaster for $500.The toaster's label bears a disclaimer stating that the manufacturer is not liable for consequential damages.One day,while Mary is using the toaster,it starts emitting sparks and the electrical wiring of the kitchen gets damaged.The electrician tells Mary that the toaster malfunctioned and that the cost of repairs would be $2,000.What monetary damages can Mary recover from the manufacturer of the toaster?

Accepted Answer

A) $500 
B) $2,500 
C) $2,000 
D) damages cannot be recovered 
A) $500 
B) $2,500 
C) $2,000 
D) damages cannot be recovered

Question 10

An award of ________ orders the breaching party to perform the acts promised in a contract.

Accepted Answer

A) reformation 
B) injunction 
C) restitution 
D) specific performance 
A) reformation 
B) injunction 
C) restitution 
D) specific performance

Question 11

If the builder breaches a construction contract either before or during construction,the owner can recover the increased cost above the contract price that he or she has to pay to have the work completed by another contractor.

Accepted Answer

A) True 
 B)False

Question 12

An employee who has been dismissed improperly accepts a job that is not comparable.Which of the following can be a subsequent course of action?

Accepted Answer

A) The employee can sue the prior employer for damages. 
B) The previous employer must offer salary compensation on a monthly basis, until the employee's new salary becomes comparable to the compensation at the previous job. 
C) The employee can sue the prior employer to recover his or her salary for one year. 
D) The employee can take no legal action against his or her prior employer after accepting a different job. 
A) The employee can sue the prior employer for damages. 
B) The previous employer must offer salary compensation on a monthly basis, until the employee's new salary becomes comparable to the compensation at the previous job. 
C) The employee can sue the prior employer to recover his or her salary for one year. 
D) The employee can take no legal action against his or her prior employer after accepting a different job.

Question 13

Which of the following constitutes a case of anticipatory breach?

Accepted Answer

A) It occurs when a contracting party fails to inform the other party in advance about nonperformance of his or her contractual duties when due. 
B) In case of anticipatory breach, nonbreaching party's obligations under the contract are not discharged. 
C) The nonbreaching party must wait until performance is due to sue the breaching party. 
D) Anticipatory breach can be derived from the conduct of the breaching party without being expressly stated by that party. 
A) It occurs when a contracting party fails to inform the other party in advance about nonperformance of his or her contractual duties when due. 
B) In case of anticipatory breach, nonbreaching party's obligations under the contract are not discharged. 
C) The nonbreaching party must wait until performance is due to sue the breaching party. 
D) Anticipatory breach can be derived from the conduct of the breaching party without being expressly stated by that party.

Question 14

A court order that prohibits a person from doing a certain act is termed as a(n)________.

Accepted Answer

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

Question 15

When a party commits an anticipatory breach,the nonbreaching party ________.

Accepted Answer

A) must wait until the performance was due before suing 
B) is immediately discharged from his or her own duties 
C) cannot seek damages because he or she received advance notice of the breach 
D) loses his or her right to sue after the due date for performance is reached 
A) must wait until the performance was due before suing 
B) is immediately discharged from his or her own duties 
C) cannot seek damages because he or she received advance notice of the breach 
D) loses his or her right to sue after the due date for performance is reached

Question 16

________ is a situation in which a party to a contract renders performance exactly as required by the contract.

Accepted Answer

A) Substantial performance 
B) Strict performance 
C) Anticipatory repudiation 
D) Restitution 
A) Substantial performance 
B) Strict performance 
C) Anticipatory repudiation 
D) Restitution

Question 17

An unconditional and absolute offer by a contracting party to perform his or her obligations under the contract is known as an injunction.

Accepted Answer

A) True 
 B)False

Question 18

QuickClicks,an online advertising company,makes a contract to purchase six computers from Comptail,a local retailer,for $20,000.However,Comptail breaches the contract by not delivering the computers on time.The next day,QuickClicks manages to purchase the computers from another retailer for $18,000 and receives immediate delivery.QuickClicks can bring a lawsuit against Comptail to recover ________ damages.

Accepted Answer

A) consequential 
B) compensatory 
C) nominal 
D) liquidated 
A) consequential 
B) compensatory 
C) nominal 
D) liquidated

Question 19

A(n)________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

Accepted Answer

A) material 
B) minor 
C) anticipatory 
D) defensive 
A) material 
B) minor 
C) anticipatory 
D) defensive

Question 20

Which of the following is true of monetary damages?

Accepted Answer

A) Nominal damages are paid once the nonbreaching party has suffered a financial loss. 
B) Anticipatory breaches cannot be awarded monetary damages. 
C) Liquidated damages are set by the court to the breaching party. 
D) Consequential damages are considered monetary damages. 
A) Nominal damages are paid once the nonbreaching party has suffered a financial loss. 
B) Anticipatory breaches cannot be awarded monetary damages. 
C) Liquidated damages are set by the court to the breaching party. 
D) Consequential damages are considered monetary damages.

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

Liquidated damages are awarded only if actual damages are precisely determined.

The amount of compensatory damages that will be awarded for breach of contract depends on which party breached the contract.

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Kimberly Inc.,a jewelry manufacturer,and JKCent,a retailer,draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However,the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

A nonbreaching party cannot rescind the contract in the event of a material breach.

A ________ is an order of the court that orders that wages,bank accounts,or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgment.

Specific performance of personal service contracts is not granted.

An award of ________ orders the breaching party to perform the acts promised in a contract.

If the builder breaches a construction contract either before or during construction,the owner can recover the increased cost above the contract price that he or she has to pay to have the work completed by another contractor.

An employee who has been dismissed improperly accepts a job that is not comparable.Which of the following can be a subsequent course of action?

Which of the following constitutes a case of anticipatory breach?

A court order that prohibits a person from doing a certain act is termed as a(n)________.

When a party commits an anticipatory breach,the nonbreaching party ________.

________ is a situation in which a party to a contract renders performance exactly as required by the contract.

An unconditional and absolute offer by a contracting party to perform his or her obligations under the contract is known as an injunction.

A(n)________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

Which of the following is true of monetary damages?

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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