Question 1

Tender of performance discharges a party's contractual obligations.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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 C

Question 4

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 5

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 6

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

Accepted Answer

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

Question 7

Which of the following is NOT a type of monetary damages?

Accepted Answer

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

Question 8

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 9

The return of goods or property received from the other party to rescind a contract is known as restitution.

Accepted Answer

A) True 
 B)False

Question 10

To obtain an injunction, the requesting party must show that he or she will suffer irreparable injury if the injunction is not issued.

Accepted Answer

A) True 
 B)False

Question 11

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

Accepted Answer

A)  Rescission 
B)  Recession 
C)  Restitution 
D)  Retribution 
A)  Rescission 
B)  Recession 
C)  Restitution 
D)  Retribution

Question 12

________ is an action to undo a contract.

Accepted Answer

A)  Rescission 
B)  Recession 
C)  Restitution 
D)  Retribution 
A)  Rescission 
B)  Recession 
C)  Restitution 
D)  Retribution

Question 13

Which of the following constitutes material breach?

Accepted Answer

A)  inferior performance 
B)  substantial performance 
C)  anticipatory repudiation 
D)  rescission without notification 
A)  inferior performance 
B)  substantial performance 
C)  anticipatory repudiation 
D)  rescission without notification

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Accepted Answer

A)  Restitution 
B)  Rescission 
C)  Anticipatory repudiation 
D)  Material breach 
A)  Restitution 
B)  Rescission 
C)  Anticipatory repudiation 
D)  Material breach

Question 16

Howard and Ali enter into a contract where Ali has to ship goods within six weeks of signing the contract. Two weeks into the contract, Ali informs Howard that he cannot provide the shipment on time. What type of contractual breach does this constitute? Suggest Howard's course of action following the breach of contract.

Accepted Answer

Ali's actions constitute an anticipatory

Question 17

Monetary damages can be recovered only for a material breach.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is NOT true regarding arbitration of contract disputes?

Accepted Answer

A)  A judge or jury decides the outcome. 
B)  Most arbitration agreements stipulate decisions cannot be appealed to the courts. 
C)  Arbitration occurs only when the parties have entered into an arbitration agreement. 
D)  Arbitration clauses are common in consumer and business contracts. 
A)  A judge or jury decides the outcome. 
B)  Most arbitration agreements stipulate decisions cannot be appealed to the courts. 
C)  Arbitration occurs only when the parties have entered into an arbitration agreement. 
D)  Arbitration clauses are common in consumer and business contracts.

Question 19

Parties to a contract agree upon liquidated damages after the contract has been breached.

Accepted Answer

A) True 
 B)False

Question 20

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

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

Tender of performance discharges a party's contractual obligations.

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

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(n) ________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations that impairs or destroys the essence of the contract.

Which of the following is NOT a type of monetary damages?

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

The return of goods or property received from the other party to rescind a contract is known as restitution.

To obtain an injunction, the requesting party must show that he or she will suffer irreparable injury if the injunction is not issued.

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

________ is an action to undo a contract.

Which of the following constitutes material breach?

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

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Monetary damages can be recovered only for a material breach.

Which of the following statements is NOT true regarding arbitration of contract disputes?

Parties to a contract agree upon liquidated damages after the contract has been breached.

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

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial, Alternative, and E-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

Franchise and Special Forms of Business

Investor Protection and E-Securities Transactions

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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