Question 1

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

Accepted Answer

An agreement setting forth liquidated da

Question 2

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

Accepted Answer

A)  Mitigation. 
B)  Certainty. 
C)  Restitution. 
D)  Foreseeability. 
A)  Mitigation. 
B)  Certainty. 
C)  Restitution. 
D)  Foreseeability.

Question 3

Jimmy made a contract to sell his townhouse to Thomas for $180,000.Two days later Jimmy changed his mind after discovering that he could have sold the property to another buyer for an additional $30,000.Thomas sues and asks the court to have the property conveyed to him at the price of $180,000.Thomas is seeking:

Accepted Answer

A)  restitution. 
B)  specific performance. 
C)  punitive damages. 
D)  valid tender. 
A)  restitution. 
B)  specific performance. 
C)  punitive damages. 
D)  valid tender.

Question 4

Misrepresentation that induces a party to enter into a contract may give rise to remedies under:

Accepted Answer

A)  the law of restitution only 
B)  the law of restitution and contract law 
C)  the law of restitution, contract law, and tort law 
D)  contract law only 
A)  the law of restitution only 
B)  the law of restitution and contract law 
C)  the law of restitution, contract law, and tort law 
D)  contract law only

Question 5

Howard needs a truck to pull a 2,000-pound trailer.Gordon tells Howard, "My truck will pull a 2,000 pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer.If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for:

Accepted Answer

A)  out-of-pocket damages, plus consequential damages. 
B)  punitive damages, but not out-of-pocket damages. 
C)  out-of-pocket damages plus punitive damages. 
D)  nominal damages because Howard should have known the capacity of the truck. 
A)  out-of-pocket damages, plus consequential damages. 
B)  punitive damages, but not out-of-pocket damages. 
C)  out-of-pocket damages plus punitive damages. 
D)  nominal damages because Howard should have known the capacity of the truck.

Question 6

Barbara, an antique dealer, intentionally misrepresents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is worth $2,500.In a state that uses the "out-of-pocket" rule, Margaret's damage award would be:

Accepted Answer

A)  $3,000. 
B)  $3,500. 
C)  $2,500. 
D)  $500. 
A)  $3,000. 
B)  $3,500. 
C)  $2,500. 
D)  $500.

Question 7

Punitive damages are not always awarded as a deterrent in breach of contract cases.

Accepted Answer

A) True 
 B)False

Question 8

Equitable remedies result in money awards to the plaintiff.

Accepted Answer

A) True 
 B)False

Question 9

Arlene signs an employment contract to work for a local business, Davis Restoration, for one year but is wrongfully discharged after three months.In order to recover from Davis full pay for the remaining nine months of her contract, Arlene:

Accepted Answer

A)  must accept a radically different type of job if that is all she can find. 
B)  must accept employment 60 miles away if that is the only available similar job. 
C)  must use reasonable efforts to mitigate her damages by seeking other employment, even if she does not find another job. 
D)  need only file suit against Davis Restoration since they are contractually bound to pay Arlene for one year of employment. 
A)  must accept a radically different type of job if that is all she can find. 
B)  must accept employment 60 miles away if that is the only available similar job. 
C)  must use reasonable efforts to mitigate her damages by seeking other employment, even if she does not find another job. 
D)  need only file suit against Davis Restoration since they are contractually bound to pay Arlene for one year of employment.

Question 10

Scott, a minor, sells his digital camera to Hadley, who then sells it to Sherry.Under these circumstances:

Accepted Answer

A)  if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted. 
B)  if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse. 
C)  Hadley and Sherry both received a voidable title regardless of whether they contracted in good faith. 
D)  Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry. 
A)  if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted. 
B)  if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse. 
C)  Hadley and Sherry both received a voidable title regardless of whether they contracted in good faith. 
D)  Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry.

Question 11

A party with the power to avoid a contract will not lose that power by delaying the avoidance.

Accepted Answer

A) True 
 B)False

Question 12

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is correct with respect to election of remedies?

Accepted Answer

A)  The remedy of specific performance is consistent with that of restitution. 
B)  The Code follows the doctrine of election of remedies with respect to contracts for the sale of goods. 
C)  A person who seeks an injunction may also seek incidental damages for the breach. 
D)  All of these are correct. 
A)  The remedy of specific performance is consistent with that of restitution. 
B)  The Code follows the doctrine of election of remedies with respect to contracts for the sale of goods. 
C)  A person who seeks an injunction may also seek incidental damages for the breach. 
D)  All of these are correct.

Question 14

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Accepted Answer

A) True 
 B)False

Exam 18: Contract Remediespart Iv: Sales

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

Misrepresentation that induces a party to enter into a contract may give rise to remedies under:

Punitive damages are not always awarded as a deterrent in breach of contract cases.

Equitable remedies result in money awards to the plaintiff.

Arlene signs an employment contract to work for a local business, Davis Restoration, for one year but is wrongfully discharged after three months.In order to recover from Davis full pay for the remaining nine months of her contract, Arlene:

Scott, a minor, sells his digital camera to Hadley, who then sells it to Sherry.Under these circumstances:

A party with the power to avoid a contract will not lose that power by delaying the avoidance.

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Which of the following is correct with respect to election of remedies?

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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