Question 1

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. B

Question 2

Which of the following statements is incorrect concerning liquidated damages?

Accepted Answer

A) A liquidated damages clause will be enforced if,when the contract was made,it was difficult to estimate actual damages. 
B) The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. 
C) Nominal damages are not the same thing as liquidated damages. 
D) Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party. 
A) A liquidated damages clause will be enforced if,when the contract was made,it was difficult to estimate actual damages. 
B) The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. 
C) Nominal damages are not the same thing as liquidated damages. 
D) Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party. D

Question 3

Compensatory damages are typically assessed against the breaching party:

Accepted Answer

A) as a penalty for breaching the contract. 
B) only under the UCC when the sale of goods is the subject of the contract. 
C) to put the non-breaching party in the position it would have been in had the contract never been formed. 
D) to put the non-breaching party in the position it would have been in if the contract hadn't been breached. 
A) as a penalty for breaching the contract. 
B) only under the UCC when the sale of goods is the subject of the contract. 
C) to put the non-breaching party in the position it would have been in had the contract never been formed. 
D) to put the non-breaching party in the position it would have been in if the contract hadn't been breached. D

Question 4

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 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 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 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.The potatoes are beginning to rot.If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad,then this action would be considered:

Accepted Answer

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

Question 7

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 8

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.

Question 9

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 10

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days.The parties negotiated and meant to say in the written agreement,delivery in 50 days.If the two cannot settle this dispute,and Archie still wants to deliver the champagne,then Archie should sue for the remedy of:

Accepted Answer

A) reformation. 
B) rescission. 
C) restitution. 
D) reliance. 
A) reformation. 
B) rescission. 
C) restitution. 
D) reliance.

Question 11

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. 
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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

The Milicic v.Basketball Marketing Company,Inc.case illustrated the proper use of a preliminary injunction.

Accepted Answer

A) True 
 B)False

Question 15

Specific performance is available when the subject matter of the contract is unique.

Accepted Answer

A) True 
 B)False

Question 16

Ralph is a professional football player.He signs a valid contract with the Jets.Later,the Giants offer him more money,so he signs a contract with them.If the Jets sue Ralph,the most likely result would be?

Accepted Answer

A) The court will order Ralph to play with the Jets. 
B) The court will order Ralph to play with the Jets,but Ralph is entitled to be paid the amount he negotiated under the Giants contract. 
C) The court will enjoin Ralph from playing with any team other than the Jets. 
D) The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts. 
A) The court will order Ralph to play with the Jets. 
B) The court will order Ralph to play with the Jets,but Ralph is entitled to be paid the amount he negotiated under the Giants contract. 
C) The court will enjoin Ralph from playing with any team other than the Jets. 
D) The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts.

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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. 
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 20

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

Accepted Answer

The four principal contract interests a

Exam 17: Remedies

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

Which of the following statements is incorrect concerning liquidated damages?

Compensatory damages are typically assessed against the breaching party:

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

The remedy of reformation:

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

If a court awards nominal damages it will generally:

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

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

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.

The Milicic v.Basketball Marketing Company,Inc.case illustrated the proper use of a preliminary injunction.

Specific performance is available when the subject matter of the contract is unique.

Ralph is a professional football player.He signs a valid contract with the Jets.Later,the Giants offer him more money,so he signs a contract with them.If the Jets sue Ralph,the most likely result would be?

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

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

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

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