Question 1

Damages are awarded for whatever injury a nonbreaching party suffers, whether or not the breaching party could have foreseen the injury.

Accepted Answer

A) True 
 B)False

Question 2

A enters into a contract with B Fitness Club for discounted memberships for A's employees. If B breaches the contract and A enters into a contract with D Sports for the same service at a lower price, A might be awarded nominal damages to

Accepted Answer

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

Question 3

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched.

Accepted Answer

A) True 
 B)False

Question 4

Compensatory damages are foreseeable damages that arise from a party's breach of a contract.

Accepted Answer

A) True 
 B)False

Question 5

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Accepted Answer

A) True 
 B)False

Question 6

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta 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 Even-Flo. 
D)  sue Even-Flo for damages. 
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 Even-Flo. 
D)  sue Even-Flo for damages.

Question 7

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract

Accepted Answer

A)  Lou must return the $50 and Mira must return the player. 
B)  Lou must return the $50 only. 
C)  Mira must return the player only. 
D)  the parties can keep the "benefits" of their bargain. 
A)  Lou must return the $50 and Mira must return the player. 
B)  Lou must return the $50 only. 
C)  Mira must return the player only. 
D)  the parties can keep the "benefits" of their bargain.

Question 8

Consequential damages are awarded to cover all of the remote conse?quences of whatever injury a nonbreaching party suffers.

Accepted Answer

A) True 
 B)False

Question 9

Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to

Accepted Answer

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

Question 10

Reformation allows a court to rewrite a contract to reflect the parties' true intentions.

Accepted Answer

A) True 
 B)False

Question 11

If a party breaches a contract, the other party can only refuse to perform.

Accepted Answer

A) True 
 B)False

Question 12

Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover

Accepted Answer

A)  $13,000. 
B)  $10,000. 
C)  $3,000. 
D)  $0. 
A)  $13,000. 
B)  $10,000. 
C)  $3,000. 
D)  $0.

Question 13

The measure of damages for breach of a construction contract depends on which party breaches and when.

Accepted Answer

A) True 
 B)False

Question 14

A contract for a sale of land from United Properties, Inc., to Variety Investments Corporation contains an erroneous legal description. The most appropriate remedy for these parties is

Accepted Answer

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

Question 15

Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry

Accepted Answer

A)  compensatory damages. 
B)  consequential damages. 
C)  nominal damages. 
D)  punitive damages. 
A)  compensatory damages. 
B)  consequential damages. 
C)  nominal damages. 
D)  punitive damages.

Question 16

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

Accepted Answer

A)  avoid reletting the premises to recover damages from Ray. 
B)  make reasonable efforts to relet the premises to mitigate dam?ages. 
C)  relet the premises to recover damages from Ray. 
D)  sell the premises to recover damages from Ray. 
A)  avoid reletting the premises to recover damages from Ray. 
B)  make reasonable efforts to relet the premises to mitigate dam?ages. 
C)  relet the premises to recover damages from Ray. 
D)  sell the premises to recover damages from Ray.

Question 17

Owen buys a used Prius from Quality Motors, Inc., paying $1,000 down and agreeing to pay off the balance in thirty-six monthly payments of $200 each. The terms of the agreement call for Owen to make a payment on or before the first of each month, beginning March 1. During the first six months, Quality receives a $200 payment before the first of each month. Starting in September, however, and continuing for the subsequent five months, Owen's payment is never made until the fifth of the month. Quality accepts and cashes the payment check each time. Before the next payment is due, Quality decides that it is no longer willing to accept late payments. Can Quality sue Owen immediately for breach? Can Owen continue to make late payments without liability? Explain.

Accepted Answer

The dispute between these parties turns

Question 18

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

Accepted Answer

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

Question 19

The measure of damages for the breach of a contract for a sale of land de?pends on which party breaches and when.

Accepted Answer

A) True 
 B)False

Question 20

Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

Accepted Answer

A)  a limitation-of-liability clause. 
B)  an exculpatory clause. 
C)  an illegal clause. 
D)  a quasi contract. 
A)  a limitation-of-liability clause. 
B)  an exculpatory clause. 
C)  an illegal clause. 
D)  a quasi contract.

Exam 18: Breach of Contract and Remedies

Damages are awarded for whatever injury a nonbreaching party suffers, whether or not the breaching party could have foreseen the injury.

A enters into a contract with B Fitness Club for discounted memberships for A's employees. If B breaches the contract and A enters into a contract with D Sports for the same service at a lower price, A might be awarded nominal damages to

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched.

Compensatory damages are foreseeable damages that arise from a party's breach of a contract.

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract

Consequential damages are awarded to cover all of the remote conse?quences of whatever injury a nonbreaching party suffers.

Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to

Reformation allows a court to rewrite a contract to reflect the parties' true intentions.

If a party breaches a contract, the other party can only refuse to perform.

Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover

The measure of damages for breach of a construction contract depends on which party breaches and when.

A contract for a sale of land from United Properties, Inc., to Variety Investments Corporation contains an erroneous legal description. The most appropriate remedy for these parties is

Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

The measure of damages for the breach of a contract for a sale of land de?pends on which party breaches and when.

Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

The Statute of Fraudswriting Requirements

Ethics and Business Decision Making

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crimes

Nature and Terminology

Agreement

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

Third Party Rights

Performance and Discharge

E-Contracts and E-Signatures

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks, the Banking System, and E-Money

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Liability to Third Parties and Termination

Employment and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporationsformation and Financing

Corporationsdirectors, Officers, Shareholders

Corporationsmerger, Consolidation, Termination

Corporationssecurities Law Corporate Governance

Law for Small Businesses

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Personal Property and Bailments

Real Property and Landlord-Tenant Relationships

Insurance

Wills and Trusts

Professional Liaility and Accountability

International Law in a Global Economy

Legal and Ethical Issues in Business

Legal Issues

Contracts and Business Law

Contracts and Liability

Banking and Payment Systems

Loan Security and Repossession in Credit Transactions

Employment Law and Ethics

Legal Issues in Corporate Governance and Business Operations

Legal and Ethical Issues in Environmental Protection and Consumer Rights