Question 1

Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio

Accepted Answer

A) agree to sign a bill of sale. 
B) exchange the player for the $30. 
C) sign a receipt. 
D) shake hands and go their separate ways. 
A) agree to sign a bill of sale. 
B) exchange the player for the $30. 
C) sign a receipt. 
D) shake hands and go their separate ways.

Question 2

In most contracts,promises of performance are expressly conditioned.

Accepted Answer

A) True 
 B)False

Question 3

Contracts for the sale of goods usually qualify for specific performance.

Accepted Answer

A) True 
 B)False

Question 4

Tristan hires Stefani to perform at Tristan's Club,but she breaches the agreement to accept a higher-paying job at Rock Star Arena.Tristan files a suit against Stefani.The court will most likely

Accepted Answer

A) award damages to Tristan. 
B) cancel Stefani and Rock Star's contract. 
C) order Stefani to perform the contract. 
D) reform Tristan and Stefani's contract. 
A) award damages to Tristan. 
B) cancel Stefani and Rock Star's contract. 
C) order Stefani to perform the contract. 
D) reform Tristan and Stefani's contract.

Question 5

Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a contract.To be enforceable,the contract must be in writing if it involves

Accepted Answer

A) an interest in land. 
B) an air filter that costs less than $500. 
C) collateral for a loan. 
D) a service that can be performed within less than a year. 
A) an interest in land. 
B) an air filter that costs less than $500. 
C) collateral for a loan. 
D) a service that can be performed within less than a year.

Question 6

Consequential damages are awarded for damage caused by special circumstances beyond a contract.

Accepted Answer

A) True 
 B)False

Question 7

Rural Power Utility,Inc.,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

Accepted Answer

A) a penalty. 
B) liquidated damages. 
C) restitution. 
D) a breach of contract. 
A) a penalty. 
B) liquidated damages. 
C) restitution. 
D) a breach of contract.

Question 8

Performance can be accomplished by tender.

Accepted Answer

A) True 
 B)False

Question 9

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.

Accepted Answer

A) True 
 B)False

Question 10

GroundSwell Pools,Inc.,agrees to build a swimming pool for Francis,but fails to complete the job.Francis hires EquiAqua,Inc.,to finish the project.Francis may recover from GroundSwell

Accepted Answer

A) the contract price less costs of materials and labor. 
B) the contract price. 
C) the costs needed to complete construction. 
D) profits plus the costs incurred up to the time of the breach. 
A) the contract price less costs of materials and labor. 
B) the contract price. 
C) the costs needed to complete construction. 
D) profits plus the costs incurred up to the time of the breach.

Question 11

On April 1,KO Contractors,Inc.,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation

Accepted Answer

A) KO is in breach of contract. 
B) Lo-Cost is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended. 
A) KO is in breach of contract. 
B) Lo-Cost is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended.

Question 12

Rig Heli-Pads,Inc.,enters into a contract to employ Scott as an on-site project manager for two years.If Rig breaches the contract,Scott has a duty to

Accepted Answer

A) do nothing. 
B) reduce the damages that Scott might otherwise suffer. 
C) rescind the contract with Rig. 
D) sue Rig to deter others from similar acts. 
A) do nothing. 
B) reduce the damages that Scott might otherwise suffer. 
C) rescind the contract with Rig. 
D) sue Rig to deter others from similar acts.

Question 13

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair,Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages,Carousel can recover

Accepted Answer

A) the cost of new turf. 
B) the difference between Damon's price and the actual cost of repair. 
C) the loss of profit from the canceled game. 
D) nothing. 
A) the cost of new turf. 
B) the difference between Damon's price and the actual cost of repair. 
C) the loss of profit from the canceled game. 
D) nothing.

Question 14

A contract may include a clause stating that damages must be limited to a maximum amount.

Accepted Answer

A) True 
 B)False

Question 15

If a contract states that a right cannot be assigned,then ordinarily it cannot be assigned.

Accepted Answer

A) True 
 B)False

Question 16

A contractual obligation may not be discharged through novation.

Accepted Answer

A) True 
 B)False

Question 17

Dylan enters into a contract to manage the operations of Cash's accounting office for one year,renewable for subsequent one-year terms.If this contract is discharged like most contracts,it will be

Accepted Answer

A) canceled. 
B) compromised. 
C) altered. 
D) performed. 
A) canceled. 
B) compromised. 
C) altered. 
D) performed.

Question 18

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

Accepted Answer

A) damages. 
B) nothing more. 
C) repudiation. 
D) alteration. 
A) damages. 
B) nothing more. 
C) repudiation. 
D) alteration.

Question 19

Vacation Vistas,Inc.,agrees to sell certain acreage to Umiko,who intends to develop a destination resort.Vacation Vistas repudiates the deal.Umiko sues Vacation Vistas and recovers damages.She can now obtain

Accepted Answer

A) a double recovery. 
B) damages representing restitution. 
C) specific performance of the deal. 
D) nothing more. 
A) a double recovery. 
B) damages representing restitution. 
C) specific performance of the deal. 
D) nothing more.

Question 20

As a general rule,any contract duty can be delegated.

Accepted Answer

A) True 
 B)False

Exam 10: Contract Performance,breach,and Remedies

Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio

In most contracts,promises of performance are expressly conditioned.

Contracts for the sale of goods usually qualify for specific performance.

Tristan hires Stefani to perform at Tristan's Club,but she breaches the agreement to accept a higher-paying job at Rock Star Arena.Tristan files a suit against Stefani.The court will most likely

Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a contract.To be enforceable,the contract must be in writing if it involves

Consequential damages are awarded for damage caused by special circumstances beyond a contract.

Rural Power Utility,Inc.,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

Performance can be accomplished by tender.

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.

GroundSwell Pools,Inc.,agrees to build a swimming pool for Francis,but fails to complete the job.Francis hires EquiAqua,Inc.,to finish the project.Francis may recover from GroundSwell

On April 1,KO Contractors,Inc.,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation

Rig Heli-Pads,Inc.,enters into a contract to employ Scott as an on-site project manager for two years.If Rig breaches the contract,Scott has a duty to

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair,Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages,Carousel can recover

A contract may include a clause stating that damages must be limited to a maximum amount.

If a contract states that a right cannot be assigned,then ordinarily it cannot be assigned.

A contractual obligation may not be discharged through novation.

Dylan enters into a contract to manage the operations of Cash's accounting office for one year,renewable for subsequent one-year terms.If this contract is discharged like most contracts,it will be

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

Vacation Vistas,Inc.,agrees to sell certain acreage to Umiko,who intends to develop a destination resort.Vacation Vistas repudiates the deal.Umiko sues Vacation Vistas and recovers damages.She can now obtain

As a general rule,any contract duty can be delegated.

Business and Its Legal Environment

A: Online Developments:

Ethics and Business Decision Making

Courts and Alternative Dispute Resolution

Constitutional Authority to Regulate Business

Torts,cyber Torts,and Strict Liabiity

Criminal Law and Cyber Crime

International Law in a Global Economy

Intellectual Property and Internet Law

A: Online Developments:

Formation in Traditional and E-Contracts

Sales,leases,and Product Liability

Creditor-Debtor Relations and Bankruptcy

Mortgages Foreclosures After the Recession

Small Business Organizations

A: Landmark in the Legal Environment:

Corporations

Agency

Employment,immigration,and Labor Law

Employment Discrimination

Powers and Functions of Administrative Agencies

Consumer Protection

Protecting the Environment

Real Property and Land-Use Control

Antitrust Law and Promoting Competition

Investor Protection and Corporate Governance

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