Question 1

Specific performance is the remedy customarily used when one party has breached a contract for the sale of goods.

Accepted Answer

A) True 
 B)False  False

Question 2

A party seeking to recover in quasi contract must show that there was an actual contract or agreement between the parties.

Accepted Answer

A) True 
 B)False  False

Question 3

Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek'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)  a liquidated damages clause. 
D)  a quasi contract. 
A)  a limitation-of-liability clause. 
B)  an exculpatory clause. 
C)  a liquidated damages clause. 
D)  a quasi contract. A

Question 4

Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to

Accepted Answer

A)  reduce the damages that Fashion might otherwise suffer. 
B)  reduce the loss that Great Promotions might otherwise suffer. 
C)  punish Great Promotions and deter others from similar acts. 
D)  take no action. 
A)  reduce the damages that Fashion might otherwise suffer. 
B)  reduce the loss that Great Promotions might otherwise suffer. 
C)  punish Great Promotions and deter others from similar acts. 
D)  take no action.

Question 5

A contract may include a clause stating that no damages can be recovered for a certain type of breach.

Accepted Answer

A) True 
 B)False

Question 6

A penalty provision specifies a certain amount to be paid in the event of a default or breach of contract.

Accepted Answer

A) True 
 B)False

Question 7

A person's actions may cause a breach of contract or a tort, but not both.

Accepted Answer

A) True 
 B)False

Question 8

To avoid liability for intentional injuries, Northwest Power Corporation includes in its contracts an exculpatory clause. This is

Accepted Answer

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Karif orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Karif sends her the rest of the price, Jane refuses to ship the collection. Karif should seek

Accepted Answer

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

Question 11

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 12

Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver. Dondi buys the appliance elsewhere for $5,500. Dondi's measure of damages is

Accepted Answer

A)  $1,000. 
B)  $1,000 plus incidental damages. 
C)  incidental damages only. 
D)  $0. 
A)  $1,000. 
B)  $1,000 plus incidental damages. 
C)  incidental damages only. 
D)  $0.

Question 13

Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover

Accepted Answer

A)  the contract price less costs of materials and labor. 
B)  the contract price. 
C)  the costs needed to complete construction. 
D)  profits plus the costs incurred up to the time of the breach. 
A)  the contract price less costs of materials and labor. 
B)  the contract price. 
C)  the costs needed to complete construction. 
D)  profits plus the costs incurred up to the time of the breach.

Question 14

Damages are designed to punish a breaching party and deter others from similar conduct.

Accepted Answer

A) True 
 B)False

Question 15

A party seeking to recover compensatory damages cannot also recover incidental damages.

Accepted Answer

A) True 
 B)False

Question 16

A party who knowingly accepts defective performance of a contract waives the breach.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.

Accepted Answer

A) True 
 B)False

Question 19

Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek

Accepted Answer

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

Question 20

Most parties settle their lawsuits for damages or other remedies prior to trial.

Accepted Answer

A) True 
 B)False

Exam 18: Breach of Contract and Remedies

Specific performance is the remedy customarily used when one party has breached a contract for the sale of goods.

A party seeking to recover in quasi contract must show that there was an actual contract or agreement between the parties.

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

Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to

A contract may include a clause stating that no damages can be recovered for a certain type of breach.

A penalty provision specifies a certain amount to be paid in the event of a default or breach of contract.

A person's actions may cause a breach of contract or a tort, but not both.

To avoid liability for intentional injuries, Northwest Power Corporation includes in its contracts an exculpatory clause. This is

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

Karif orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Karif sends her the rest of the price, Jane refuses to ship the collection. Karif should seek

Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver. Dondi buys the appliance elsewhere for $5,500. Dondi's measure of damages is

Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover

Damages are designed to punish a breaching party and deter others from similar conduct.

A party seeking to recover compensatory damages cannot also recover incidental damages.

A party who knowingly accepts defective performance of a contract waives the breach.

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

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.

Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek

Most parties settle their lawsuits for damages or other remedies prior to trial.

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

for Unit One

for Unit Two

for Unit Three

for Unit Four

for Unit Five

for Unit Sex

for Unit Seven

for Unit Eighet

for Unit Nine