Question 1

A party seeking to recover in quasi contract must show that the other party has been unjustly enriched.

Accepted Answer

A) True 
 B)False

Question 2

Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely

Accepted Answer

A)  ​award damages to Dino. 
B)  ​cancel Dino and Eve's contract. 
C)  ​order Eve to perform the contract. 
D)  ​rewrite Dino and Eve's contract. 
A)  ​award damages to Dino. 
B)  ​cancel Dino and Eve's contract. 
C)  ​order Eve to perform the contract. 
D)  ​rewrite Dino and Eve's contract.

Question 3

Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign. Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign. As compensatory damages, Nogales can recover

Accepted Answer

A) $150,000. 
B) $15,000. 
C) $1,500. 
D) $0. 
A) $150,000. 
B) $15,000. 
C) $1,500. 
D) $0.

Question 4

Fortuna enters into a contract to buy fifty acres from Garrison to expand Fortuna's farm. Garrison breaches the contract. Fortuna's normal remedy is

Accepted Answer

A)  ​damages. 
B)  ​reformation. 
C)  ​rescission 
D)  ​specific performance. 
A)  ​damages. 
B)  ​reformation. 
C)  ​rescission 
D)  ​specific performance.

Question 5

A contract between Recreational Games & Rides, Inc., and Summer Fair Corporation includes a provision excluding liability as a result of fraud. This provision is​

Accepted Answer

A)  ​enforceable because the parties are protected from liability. 
B)  ​enforceable because the parties consented to it. 
C)  ​enforceable if the parties have equal bargaining power. 
D)  ​not enforceable. 
A)  ​enforceable because the parties are protected from liability. 
B)  ​enforceable because the parties consented to it. 
C)  ​enforceable if the parties have equal bargaining power. 
D)  ​not enforceable.

Question 6

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been in if the contract had not been breached.

Accepted Answer

A) True 
 B)False

Question 7

Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

Accepted Answer

A)  ​meant to pay for additional liquid sealant in the event of damage. 
B)  ​a reasonable estimate of the loss on a breach. 
C)  ​designed to penalize the breaching party. 
D)  ​intended to quickly provide cash to the nonbreaching party. 
A)  ​meant to pay for additional liquid sealant in the event of damage. 
B)  ​a reasonable estimate of the loss on a breach. 
C)  ​designed to penalize the breaching party. 
D)  ​intended to quickly provide cash to the nonbreaching party.

Question 8

A contract may include a clause stating that damages will be limited to a maximum amount.

Accepted Answer

A) True 
 B)False

Question 9

Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in advance. Meals Catering pays the money, but Lunch Trucks fails to perform. Can Meals Catering rescind the contract? Can Meals Catering also obtain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.

Accepted Answer

Yes, Meals Catering can rescind the cont

Question 10

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Accepted Answer

A) True 
 B)False

Question 11

Punitive damages are generally not awarded in an action for breach of contract.

Accepted Answer

A) True 
 B)False

Question 12

Equine World enters into a contract with FabuloSales to provide Equine World with a plan to repurpose its marketing strategy. If FabuloSales breaches the contract, Equine World has a duty to

Accepted Answer

A)  ​reduce the damages that Equine World might otherwise suffer. 
B)  ​reduce the loss that FabuloSales might otherwise suffer. 
C)  ​punish FabuloSales and deter others from similar acts. 
D)  ​take no action. 
A)  ​reduce the damages that Equine World might otherwise suffer. 
B)  ​reduce the loss that FabuloSales might otherwise suffer. 
C)  ​punish FabuloSales and deter others from similar acts. 
D)  ​take no action.

Question 13

Rashi contracts to work for Social Data Analysis Corporation during June for $4,500. On May 31, Social Data cancels the contract. Rashi declines a job of a different type and rank with Tech Collection, Inc., which would have paid $3,500. Rashi files a suit against Social Data. As compensatory damages, Rashi can recover

Accepted Answer

A)  ​$4,500. 
B)  ​$4,000. 
C)  ​$500. 
D)  ​$0. 
A)  ​$4,500. 
B)  ​$4,000. 
C)  ​$500. 
D)  ​$0.

Question 14

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n’ Dry Company’s coin-operated laundries. If Ready Repair breaches the contract, Scrub n’ Dry can

Accepted Answer

A) do nothing but make a deal with a different service provider. 
B) do nothing but temporarily suspend operations and wait. 
C) file a criminal complaint against  Ready Repair. 
A) do nothing but make a deal with a different service provider. 
B) do nothing but temporarily suspend operations and wait. 
C) file a criminal complaint against  Ready Repair.

Question 15

In a contract for a sale of goods, the usual measure of compensatory damages is the difference between the retail price and the wholesale price.

Accepted Answer

A) True 
 B)False

Question 16

Sati contracts to work exclusively for Thermal Imaging Company during July for $5,000. On June 30, Thermal Imaging cancels the contract. Sati finds a similar job for the month of July but earns only $3,000. Sati files a suit against Thermal Imaging. As compensatory damages, Sati can recover

Accepted Answer

A) $3,000. 
B) $2,000. 
C) $1,000. 
D) $0. 
A) $3,000. 
B) $2,000. 
C) $1,000. 
D) $0.

Question 17

Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the resurfacing, WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, WaterWorld can recover

Accepted Answer

A)  ​the cost of new pools. 
B)  ​the difference between T&G's price and the eventual cost of resurfacing. 
C)  ​the loss of profit from the delayed opening. 
D)  ​nothing. 
A)  ​the cost of new pools. 
B)  ​the difference between T&G's price and the eventual cost of resurfacing. 
C)  ​the loss of profit from the delayed opening. 
D)  ​nothing.

Question 18

Liquidated damages provisions usually are enforceable.

Accepted Answer

A) True 
 B)False

Question 19

The failure of one party to perform a contract entitles the other party to rescind it.

Accepted Answer

A) True 
 B)False

Question 20

Global Enterprise Corporation enters into a contract with HealthCare Insurance Company to obtain insurance for Global employees. If HealthCare breaches the contract and Global is awarded compensatory damages, the purpose would be to

Accepted Answer

A) establish, as a matter of principle, that HealthCare acted wrongfully. 
B) provide Global with funds for a foreseeable loss beyond the contract. 
C) provide Global with funds for its loss of the bargain. 
D) punish HealthCare and deter others from similar acts. 
A) establish, as a matter of principle, that HealthCare acted wrongfully. 
B) provide Global with funds for a foreseeable loss beyond the contract. 
C) provide Global with funds for its loss of the bargain. 
D) punish HealthCare and deter others from similar acts.

Exam 15: Breach and Remedies

A party seeking to recover in quasi contract must show that the other party has been unjustly enriched.

Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely

Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign. Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign. As compensatory damages, Nogales can recover

Fortuna enters into a contract to buy fifty acres from Garrison to expand Fortuna's farm. Garrison breaches the contract. Fortuna's normal remedy is

A contract between Recreational Games & Rides, Inc., and Summer Fair Corporation includes a provision excluding liability as a result of fraud. This provision is​

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been in if the contract had not been breached.

Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

A contract may include a clause stating that damages will be limited to a maximum amount.

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Punitive damages are generally not awarded in an action for breach of contract.

Equine World enters into a contract with FabuloSales to provide Equine World with a plan to repurpose its marketing strategy. If FabuloSales breaches the contract, Equine World has a duty to

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n’ Dry Company’s coin-operated laundries. If Ready Repair breaches the contract, Scrub n’ Dry can

In a contract for a sale of goods, the usual measure of compensatory damages is the difference between the retail price and the wholesale price.

Sati contracts to work exclusively for Thermal Imaging Company during July for $5,000. On June 30, Thermal Imaging cancels the contract. Sati finds a similar job for the month of July but earns only $3,000. Sati files a suit against Thermal Imaging. As compensatory damages, Sati can recover

Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the resurfacing, WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, WaterWorld can recover

Liquidated damages provisions usually are enforceable.

The failure of one party to perform a contract entitles the other party to rescind it.

Global Enterprise Corporation enters into a contract with HealthCare Insurance Company to obtain insurance for Global employees. If HealthCare breaches the contract and Global is awarded compensatory damages, the purpose would be to

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A contract between Recreational Games & Rides, Inc., and Summer Fair Corporation includes a provision excluding liability as a result of fraud. This provision is