Question 1

The expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations.

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

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 4

The concept that expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations is found in

Accepted Answer

A) Bi-Economy Market,Inc.v.Harleysville Ins.Co.of New York. 
B) Hadley v.Baxendale. 
C) Hawkins v.McGee. 
D) None of these are correct. 
A) Bi-Economy Market,Inc.v.Harleysville Ins.Co.of New York. 
B) Hadley v.Baxendale. 
C) Hawkins v.McGee. 
D) None of these are correct.

Question 5

The remedy of reformation

Accepted Answer

A) applies only when money damages are inadequate. 
B) can be used to correct mistakes in the original contract. 
C) is available only if fraud is involved. 
D) is a commonly used remedy. 
A) applies only when money damages are inadequate. 
B) can be used to correct mistakes in the original contract. 
C) is available only if fraud is involved. 
D) is a commonly used remedy.

Question 6

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes.If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad,then this action would be considered a(n)

Accepted Answer

A) reasonable mitigation of damages. 
B) attempt to maximize damages. 
C) attempt to realize an unwarranted profit. 
D) attempt at reformation. 
A) reasonable mitigation of damages. 
B) attempt to maximize damages. 
C) attempt to realize an unwarranted profit. 
D) attempt at reformation.

Question 7

Abigail signed a contract to purchase a new car from Wolf's Auto Sales Company.The seller breached its agreement by not delivering the car.Abigail went to another car dealer and purchased the same model of car at the same price.Although she had experienced a legal injury,Abigail has no actual financial or other damages as a result of the breach.If Abigail sues and wins,what type of damages will she be awarded?

Accepted Answer

Abigail will be awarded nominal damages.

Question 8

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?

Accepted Answer

A) the costs of psychological counseling 
B) the costs of mailing resumes to prospective employers 
C) the costs of a new wardrobe for future interviews 
D) the costs of cosmetic surgery 
A) the costs of psychological counseling 
B) the costs of mailing resumes to prospective employers 
C) the costs of a new wardrobe for future interviews 
D) the costs of cosmetic surgery

Question 9

Which type of interest is designed to return to the injured party a benefit that he or she has conferred on the other party,which would be unjust to leave with that person?

Accepted Answer

A) reliance interest 
B) expectation interest 
C) restitution interest 
D) None of these are correct. 
A) reliance interest 
B) expectation interest 
C) restitution interest 
D) None of these are correct.

Question 10

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.In this situation,Wellington Mills

Accepted Answer

A) has at least four remedies under the UCC. 
B) may resell the fabric to someone else and,if it sues Mulligan,Wellington Mills will be awarded the full contract price. 
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 fabric to someone else and,if it sues Mulligan,Wellington Mills will be awarded the full contract price. 
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 11

Specific performance may be available for the breach of a contract to sell

Accepted Answer

A) an original painting. 
B) 20 shares of Walmart stock. 
C) a Nintendo Wii video game system. 
D) a 2007 Mustang in mint condition. 
A) an original painting. 
B) 20 shares of Walmart stock. 
C) a Nintendo Wii video game system. 
D) a 2007 Mustang in mint condition.

Question 12

Banner enters into a contract with Sylvia to buy her house for $150,000.Sylvia decides later not to sell because she is so emotionally attached to the house.Banner insists that he is entitled to the house.Banner can successfully sue for specific performance.

Accepted Answer

A) True 
 B)False

Question 13

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

Accepted Answer

A) True 
 B)False

Question 14

A contract clause which specifies the amount of damages to be paid in the event of a breach is called

Accepted Answer

A) a covenant of damages clause. 
B) a reliance interest of damages clause. 
C) a liquidated damages clause. 
D) an incidental damages clause. 
A) a covenant of damages clause. 
B) a reliance interest of damages clause. 
C) a liquidated damages clause. 
D) an incidental damages clause.

Question 15

In a construction contract,there is a $1,000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

Accepted Answer

This type of clause is known as a liquid

Question 16

Larry wanted to buy a 1957 Cadillac once owned by Reggie Jackson.Larry entered into a contract with the owner agreeing to pay $102,000.The owner subsequently changed his mind.If Larry sues,what remedies are potentially available?

Accepted Answer

Larry could seek specific performance.Si

Question 17

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 18

Bob,a house builder,contracts with Ollie to build a house on Ollie's lot.The total price of the construction is $100,000,$20,000 of which will be Bob's profit.After Bob has put $10,000 worth of materials into the house,Ollie wrongfully refuses to let him finish the house.If Bob sues for damages,he will be able to collect

Accepted Answer

A) $10,000. 
B) $20,000. 
C) $30,000. 
D) $100,000. 
A) $10,000. 
B) $20,000. 
C) $30,000. 
D) $100,000.

Question 19

Dr.Gonzalez ordered specialized surgical equipment from Physician's Supply Co. ,but the company informed Dr.Gonzalez that it would not be able to meet his order by the agreed date.Even if Dr.Gonzalez does nothing to secure equipment from another source,he will be able to recover damages since the contract was breached by Physician's Supply,not Gonzalez.

Accepted Answer

A) True 
 B)False

Question 20

If a court awards nominal damages,it will generally

Accepted Answer

A) award compensatory damages as well. 
B) not make a determination as to whether there has been a breach of the contract. 
C) award punitive damages for the intentional breach of the contract. 
D) award a very small amount of money. 
A) award compensatory damages as well. 
B) not make a determination as to whether there has been a breach of the contract. 
C) award punitive damages for the intentional breach of the contract. 
D) award a very small amount of money.

Exam 19: Remedies

The expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations.

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

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

The concept that expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations is found in

The remedy of reformation

Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes.If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad,then this action would be considered a(n)

Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?

Which type of interest is designed to return to the injured party a benefit that he or she has conferred on the other party,which would be unjust to leave with that person?

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.In this situation,Wellington Mills

Specific performance may be available for the breach of a contract to sell

Banner enters into a contract with Sylvia to buy her house for $150,000.Sylvia decides later not to sell because she is so emotionally attached to the house.Banner insists that he is entitled to the house.Banner can successfully sue for specific performance.

Nominal damages are awarded in contract cases in which a damage amount was named in the contract.

A contract clause which specifies the amount of damages to be paid in the event of a breach is called

In a construction contract,there is a $1,000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

Larry wanted to buy a 1957 Cadillac once owned by Reggie Jackson.Larry entered into a contract with the owner agreeing to pay $102,000.The owner subsequently changed his mind.If Larry sues,what remedies are potentially available?

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

If a court awards nominal damages,it will generally

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

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