Question 6:??If Randolph agrees to build a swimming pool for Foxbut Randolph fails to finish the pool according to the contract specifications and Fox is forced to hire others to do so, then Fox may sue Randolph for:?a)????he contract price less the costs of material and labor(b)????rofits plus all costs incurred up to the time of the breach(c)????he contract price(d)???All costs incurred to complete construction?uestion 7:???Which of the following remedies is a possibility when a contract is breached??a)????amages(b)????pecific performance(c)????escission and restitution(d)????ll of the above?uestion 8:???Compensatory damages are typically assessed against the breaching party:?a)????o penalize that party for failing to carry out its contractual obligations(b)????nly in contracts for the sale of goods valued in excess of $500(c)????o compensate the non breaching party the loss of the bargain(d)????one of the above?uestion 9:???Punitive damages are not typically awarded in breach of contract actions because:?a)???? breach of a contract is not unlawful in a criminal sense(b)????unitive damages are designed to punish a guilty party and make an example of that party(c)????he law may only compensate the nonbreaching party for the loss of the bargain(d)????ll of the above?uestion 10: When a court awards nominal damages in a case, it will generally:?a)????ward compensatory damages as well(b)????ot specify whether a particular party has prevailed(c)????ward very little money(d)????ward punitive damages as well Question 11 :?ssume that Smothers hires Wilson to paint his house for $500 but Wilson fails to show up on the day he is scheduled to start work. If Smothers is able to hire another painter who completes the job in a competent manner for $450, then the only damages that Smothers would be able to recover from Wilson would be:?a)???Compensatory damages(b)???Punitive damages(c)???Nominal damages(d)???Incidental damagesQuestion 12: Assume that Jackson is holding 1,000 pounds of perishable cabbage in storage for Larson, but Larson has failed to pay for the costs of storage. If Jackson finally decides to sell the cabbage to a local grocer, his action can be viewed as:?a)???A mitigation of damages(b)????n attempt to punish Larson(c)???An attempt to realize a profit on the transaction(d)???LarcenyQuestion 13: If Somers agrees to build a motel for Winters but halfway through the project, which is proceeding according to the contract specifications, Winters tells Somers to quit, then Somers may sue Winters for:?a)????he contract price less the costs of materials and labor(b)????rofits plus all costs incurred up to the time of the breach(c)???The contract price(d)???All costs incurred to complete constructionQuestion 14: If Dick and Jane sign an agreement that provides for the payment of $1,000 by the party that commits a material breach of the contract that will create substantial damages, then this clause is an example of a:(a)???Penalty clause(b)????iquidated damages clause(c)???Rescissionary clause(d)???Nominal damages clause?uestion 15: If a contract for the sale of a house contains a clause providing that the failure of the buyer to close the contract on a particular day will result in the imposition of a fee that is equal to one half of the sale price of the house, then this clause will not be enforceable because it:(a)???Does not specifically state the amount of damages due if the buyer fails to close the contract(b)???Imposes a penalty on the seller for failing to close the transaction(c)???Is too vague(d)???None of the above Question 16: To be enforceable, a liquidated damages clause must:?a)????epresent a reasonable estimate of the amount of damages that would result from a breach of the contract(b)???Have been set when the contract was formed due to the difficulty of estimating the damages that would result from a breach of the contract(c)????oth (a) and (b)(d)???None of the above?uestion 17: Which of the following elements, when present in a contract, will provide a basis for a unilateral rescission of a breached contract by the innocent party??a)???Fraud(b)???Mistake(c)???Duress(d)???All of the aboveQuestion 18: If Nanette and Melissa desire to rescind their contract under which Nanette conveyed an antique vase to Melissa in exchange for $400, then:(a)???Nanette must return the $400(b)????elissa must return the antique vase(c)???Both (a) and (b) (d)???None of the above Question 19: Restitution refers to the:(a)???Recapture of a benefit conferred on a contracting party through which the party has been unjustly enriched(b)????anceling of a contract(c)???Loss of a bargain(d)???Performance of an act promised in a contract?uestion 20: Which of the following remedies is most appropriate for enabling a party to a breached real estate contract to recover the benefit of his or her bargain?(a)????amages(b)???Specific performance(c)???Restitution(d)???Liquidated damages?uestion 21: Assume that Dale and Biff sign an agreement in which Dale agrees to deliver ten tons of sheets in three days to Biff, even though the parties had meant for delivery to take place within thirty days. If Dale cannot convince Biff to agree to amend the contract, then Dale should seek to:(a)???Reform the contract(b)????escind the contract(c)????ancel the contract(d)????one of the above Question 22: If Ann seeks to recover on a quasi contract, she must demonstrate that:?a)???She has conferred a benefit on the other party with the reasonable expectation of being paid(b)???She did not act as a “volunteer” when conferring this benefit(c)???The other party would be unjustly enriched ifhe were pennitted to retain the benefit without making payment(d)???All of the above?uestion 23: To avoid liability for intentional injuries, Vermont Power Corporation includes in its contracts a clause that excludes liability for negligence. This is:?a)????nforceable if the other parties are protected from liability(b)???Enforceable if the other parties consent to it(c)????nforceable if the other parties have equal bargaining power(d)???Not enforceable, because the clause at best could only exclude liability for negligence?uestion 24: Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside’s apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is:(a)???? limitation-of-liability clause(b)???An exculpatory clause(c)????n illegal clause(d)???A quasi contract?uestion 25: Outdoor Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtain:?a)????n amount in a quasi-contractual recovery(b)???Damages representing restitution(c)????pecific performance of the deal(d)???Nothing more?uestion 26: Refined Commodities, Inc. agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within “3” days, although the parties intend “30” days. Refined cannot convince Select to amend the contract. Refined should seek:?a)????amages(b)???Reformation(c)???Rescission(d)???Specific performance Question 27: Grady enters into a contract to buy 440 acres from Hollis to expand Grady’ s ranch. If Hollis breaches the contract, Grady’ s normal remedy would be:?a)???Damages(b)???Quasi contract(c)???Reformation(d)???Specific performance?uestion 28: Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract:?a)???Lou must return the $50 and Mira must return the player(b)???Lou must return the $50 only(c)???Mira must return the player only(d)???The parties can keep the “benefits” of their bargainQuestion 29: Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the payment of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately$1,000 .” This is:?a)???? liquidated damages clause(b)???? mitigation of damages clause(c)???A nominal damages clause(d)???A penalty clause?uestion 30: Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to:?a)???Reduce the damages that Fashion might otherwise suffer(b)???Reduce the loss that Great Promotions might otherwise suffer(c)???Punish Great Promotions and deter others from similar acts(d)???Take no action?uestion 31: Handcrafts & Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When Handcrafts & Hobbies cancels the contract, Iliana spends $150 to obtain a similar job that pays $450 per week for a year. Iliana is entitled to recover:(a)???The amount of the wages that Handcrafts & Hobbies promised only(b)???The difference between the wages at the two jobs only(c)???The difference between the wages at the two jobs plus $150(d)???150 only Question 32:?eatpackers, Inc., enters into a contract with Nemiah’s Ranch for the delivery of a certain number of beef cattle on a set schedule. Nemiah’s delays the first delive1y for five days, aware that Meatpackers loses a certain percentage of profit each day. An award to Meatpackers of consequential damages would:?a)???Establish, as a matter of principle, that Nemiah’s acted wrongfully(b)???Provide Meatpackers with funds for a foreseeable loss beyond the contract(c)???Provide Meatpackers with funds for its loss of the bargain(d)???Punish Nemiah’s and set an example to deter other suppliers from similar actsQuestion 33: Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to complete the job. Quinn hires Ramadas, Inc., to finish the project. Quinn may recover from Porches & Verandas:?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 breachQuestion 34: Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot:(a)???Nothing(b)???Compensatory damages(c)???Consequential damages(d)???Nominal damages?uestion 35:?ome of the remedies that an innocent party may utilize once a contract to which he or she is a party has been breached include damages, rescission, specific performance and reformation. (T or F)?uestion 36: In general, a breach of contract entitles the nonbreaching party to sue for money damages that will compensate the nonbreaching party for the loss of the bargain. (Tor F)?uestion 37: The four types of damages in contract law include compensatory, consequential, punitive and actual damages. (T or F)?uestion 38: The four broad types of damages in contract law are conciliatory, consecutive, punctual, and nominative. (T or F)?uestion 39: A party seeking to recover compensatory damages may also be entitled to recover incidental damages. (T or F)?uestion 40: The duty owed under the mitigation of damages doctrine depends on the situation. (Tor F)BusinessManagementBusiness LawLAW 608
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