Question 1

As demonstrated in the case in the text,Garden Ridge,L.P.v.Advance International,Inc. ,a liquidated damages clause:

Accepted Answer

A) will be enforced,regardless of whether it is reasonable or not. 
B) can be claimed in addition to consequential damages. 
C) must provide a reasonable calculation of its figure. 
D) will not be enforced if it serves to penalize the breaching party. 
A) will be enforced,regardless of whether it is reasonable or not. 
B) can be claimed in addition to consequential damages. 
C) must provide a reasonable calculation of its figure. 
D) will not be enforced if it serves to penalize the breaching party.

Question 2

Sklar,an accountant,purchased two computers from Wiz Corp.Sklar discovered material defects in the computers 10 months after taking delivery.Three years after discovering the defects,Sklar commenced an action for breach of warranty against Wiz.Wiz raised the statute of limitations as a defense.The original contract between Wiz and Sklar contained a conspicuous clause providing that the statute of limitations for breach of warranty actions would be limited to 18 months.Under the circumstances,Sklar will:

Accepted Answer

A) win because the action was commenced within the four-year period as measured from the date of delivery. 
B) win because the action was commenced within the four-year period as measured from the time he discovered the breach or should have discovered the breach. 
C) lose because the clause providing that the statute of limitations would be limited to 18 months is enforceable. 
D) lose because the statute of limitations is three years from the date of delivery with respect to written contracts. 
A) win because the action was commenced within the four-year period as measured from the date of delivery. 
B) win because the action was commenced within the four-year period as measured from the time he discovered the breach or should have discovered the breach. 
C) lose because the clause providing that the statute of limitations would be limited to 18 months is enforceable. 
D) lose because the statute of limitations is three years from the date of delivery with respect to written contracts.

Question 3

What is an injunction?

Accepted Answer

A) The awarding of compensatory damages 
B) A court's order requiring a person to do something or refrain from doing something 
C) The cancellation of a contract regarding real estate 
D) A lawsuit for damages brought by the nonbreaching party 
A) The awarding of compensatory damages 
B) A court's order requiring a person to do something or refrain from doing something 
C) The cancellation of a contract regarding real estate 
D) A lawsuit for damages brought by the nonbreaching party

Question 4

Which of the following compensate for reasonable costs that the injured party incurs after the breach in an effort to avoid further loss?

Accepted Answer

A) Nominal damages 
B) Consequential damages 
C) Liquidated damages 
D) Incidental damages 
A) Nominal damages 
B) Consequential damages 
C) Liquidated damages 
D) Incidental damages

Question 5

A(n)________ is a future,uncertain event that creates or extinguishes a duty of performance.

Accepted Answer

A) condition 
B) promise 
C) assurance 
D) warranty 
A) condition 
B) promise 
C) assurance 
D) warranty

Question 6

Which of the following characterizes the statute of limitations?

Accepted Answer

A) The time period fixed by the statute of limitations is uniform throughout the states. 
B) The recording of the contract stops the running of the statute of limitations. 
C) The time period fixed by the statute of limitations begins when the contract is recorded. 
D) The time period for oral contracts is different from that of written ones. 
A) The time period fixed by the statute of limitations is uniform throughout the states. 
B) The recording of the contract stops the running of the statute of limitations. 
C) The time period fixed by the statute of limitations begins when the contract is recorded. 
D) The time period for oral contracts is different from that of written ones.

Question 7

Which of the following occurs when the promisor indicates before the time for his performance that he is unwilling or unable to carry out the contract?

Accepted Answer

A) Anticipatory repudiation 
B) Waiver 
C) Estoppel 
D) Accord and satisfaction 
A) Anticipatory repudiation 
B) Waiver 
C) Estoppel 
D) Accord and satisfaction

Question 8

Which of the following is the starting point in calculating the compensatory damages that the plaintiff had the right to expect?

Accepted Answer

A) Loss in value of the performance 
B) Loss in value of the contract 
C) Time taken for the performance 
D) Delay from the expected time of performance 
A) Loss in value of the performance 
B) Loss in value of the contract 
C) Time taken for the performance 
D) Delay from the expected time of performance

Question 9

If Grant promises to sell his regular season football tickets to Carson on condition that Indiana University wins the Rose Bowl,Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.

Accepted Answer

A) True 
 B)False

Question 10

An accountant who substantially performs her duties to her client triggers the client's duty to pay the contract price,less any damages resulting from defects in her performance.

Accepted Answer

A) True 
 B)False

Exam 18: Performance and Remedies

As demonstrated in the case in the text,Garden Ridge,L.P.v.Advance International,Inc. ,a liquidated damages clause:

What is an injunction?

Which of the following compensate for reasonable costs that the injured party incurs after the breach in an effort to avoid further loss?

A(n)________ is a future,uncertain event that creates or extinguishes a duty of performance.

Which of the following characterizes the statute of limitations?

Which of the following occurs when the promisor indicates before the time for his performance that he is unwilling or unable to carry out the contract?

Which of the following is the starting point in calculating the compensatory damages that the plaintiff had the right to expect?

If Grant promises to sell his regular season football tickets to Carson on condition that Indiana University wins the Rose Bowl,Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.

An accountant who substantially performs her duties to her client triggers the client's duty to pay the contract price,less any damages resulting from defects in her performance.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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