Question 1

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

Accepted Answer

A) True 
 B)False

Question 2

Identify and describe the four principal contract interests a court may seek to protect.

Accepted Answer

The answer of Identify and describe the four principal contract...

Question 3

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

The answer of Abigail signed a contract to purchase a...

Question 4

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.

Question 5

All Seasons,Inc.ordered $5,000 worth of Christmas decorations from Santa,Inc.The shipment of decorations was to arrive no later than October 1,but did not arrive until December 1.All Seasons was able to purchase some of the unfulfilled order through other suppliers,but had to pay 15% more than the price under contract with Santa,Inc.As a result of the delay,All Seasons' sales were down 25%.All Seasons can recover:

Accepted Answer

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

Question 6

Dr.Gonzalez ordered specialized surgical equipment from Physician's Supply Co.,but his order was not delivered by the agreed date.Gonzalez is under no obligation to minimize damages since the contract was breached by Physician's Supply,not Gonzalez.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Accepted Answer

The answer of Discuss the purpose of an injunction and...

Question 8

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be:

Accepted Answer

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

Question 9

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 10

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

The answer of Larry wanted to buy a 1957 Cadillac...

Question 11

The first step a court takes in choosing a remedy is to determine:

Accepted Answer

A)  what interest it is trying to protect. 
B)  if the damages can be quantified with reasonable certainty. 
C)  if punitive damages should be awarded. 
D)  whether the injured party mitigated its damages.

Question 12

Mercury Motors inadvertently mixes up a work order on Peter's car.Peter brought the car in to have the tires rotated.Mercury tuned up the motor by mistake,conferring a benefit on Peter.If Mercury Motors insists that Peter pay for the price of the tune-up,Mercury Motors:

Accepted Answer

A)  can recover its reliance interest. 
B)  cannot recover its expectation interest because there was no enforceable agreement. 
C)  will win based on breach of contract. 
D)  will lose because a personal service contract was involved.

Question 13

Reformation is:

Accepted Answer

A)  a type of restitution 
B)  a form of quantum meruit. 
C)  a form of quasi-contract. 
D)  uncommon.

Question 14

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.

Question 15

Carswell,a contractor,enters into a contract with Helen,a homeowner,to remodel her bathroom.The contract provides a specific completion date.The contract provides that if Carswell does not have the job finished by the date,Helen may deduct $200 per day from the contract price until the job is finished.This is an example of liquidated damages.

Accepted Answer

A) True 
 B)False

Question 16

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

Accepted Answer

A)  Shirley must return the baseball card. 
B)  Nala must return the $450. 
C)  Both a and c

Question 17

In a construction contract,there is a $1000 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

The answer of In a construction contract,there is a $1000...

Question 18

Ernest operates an ice cream stand during the months of May,June,July,and August.Ernest's ice cream machine is broken and needs a new part to run.He contracts to have the part shipped to him by special carrier.Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees,knowing that Ernest intends to open his stand May 1.If the shipper fails to deliver the part on April 25,Ernest will be able to recover consequential damages caused by the delay.

Accepted Answer

A) True 
 B)False

Question 19

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in:

Accepted Answer

A)  Bi-Economy Market, Inc. v. Harleysville Ins. Co. of New York. 
B)  Putnam Construction & Realty Co. v. Byrd. 
C)  Hadley v. Baxendale. 
D)  Toscano v. Greene Music.

Question 20

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.

Accepted Answer

A) True 
 B)False

Exam 18: Remedies

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

Identify and describe the four principal contract interests a court may seek to protect.

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

Dr.Gonzalez ordered specialized surgical equipment from Physician's Supply Co.,but his order was not delivered by the agreed date.Gonzalez is under no obligation to minimize damages since the contract was breached by Physician's Supply,not Gonzalez.

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be:

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.

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?

The first step a court takes in choosing a remedy is to determine:

Mercury Motors inadvertently mixes up a work order on Peter's car.Peter brought the car in to have the tires rotated.Mercury tuned up the motor by mistake,conferring a benefit on Peter.If Mercury Motors insists that Peter pay for the price of the tune-up,Mercury Motors:

Reformation is:

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:

If a court orders rescission and restitution of a contract under which Nala sold a baseball card to Shirley in exchange for $450:

In a construction contract,there is a $1000 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?

The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in:

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.