Deck 19: Remedies

Question 1

Carlos is hired to paint a house for $700.Before he starts,the woman who hired Carlos tells him she does not want the job done after all.Carlos finds another house-painting job that afternoon,but it pays only $500.If Carlos sues the woman for damages and is awarded $200,that amount is an example of

A)direct damages.
B)nominal damages.
C)consequential damages.
D)incidental damages.

Answer 1

A

Question 2

To win expectation damages,the injured party must prove the breach of contract caused damages that can be quantified with reasonable certainty.

Answer 2

True

Question 3

Someone breaches a contract when he or she fails to perform a duty,even with a valid excuse.

Answer 3

False

Question 4

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

Question 5

Most courts hold that a seller of goods is NOT entitled to consequential damages.

Question 6

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.

Question 7

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

Question 8

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

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 9

Expectation interest can best be described as money spent in reliance upon the agreement.

Question 10

The concept that expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations is found in

A)Bi-Economy Market,Inc.v.Harleysville Ins.Co.of New York.
B)Hadley v.Baxendale.
C)Hawkins v.McGee.
D)None of these are correct.

Question 11

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

A)a covenant of damages clause.
B)a reliance interest of damages clause.
C)a liquidated damages clause.
D)an incidental damages clause.

Question 12

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.

Question 13

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

Question 14

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

Question 15

Mulligan Domestics Co.breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills,although the fabric met the contract specifications.In this situation,Wellington Mills

A)has at least four remedies under the UCC.
B)may resell the fabric to someone else and,if it sues Mulligan,Wellington Mills will be awarded the full contract price.
C)may choose not to resell the fabric and settle for the difference between the contract price and the market value.
D)would be awarded consequential damages by most courts.

Question 16

Under the UCC,the buyer is entitled to consequential damages if the seller could have reasonably foreseen them.

Question 17

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.

Question 18

Dr.Gonzalez ordered specialized surgical equipment from Physician's Supply Co. ,but the company informed Dr.Gonzalez that it would not be able to meet his order by the agreed date.Even if Dr.Gonzalez does nothing to secure equipment from another source,he will be able to recover damages since the contract was breached by Physician's Supply,not Gonzalez.

Question 19

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.

Question 20

The expectation interest is designed to put the injured party in the position he or she would have been in had both sides fully performed their obligations.

Question 21

Larry purchased a Leisure Lawnmower because the company salesperson intentionally misled him by assuring him that the mower was self-propelled,had a mulching feature,and had a five-year unlimited manufacturer's warranty.When Larry finds out that his new Leisure Lawnmower is not self-propelled,does not mulch,and has a 90-day warranty,he may successfully sue for

A)reformation of the contract only.
B)restitution only.
C)restitution and possibly punitive damages.
D)compensatory damages only.

Question 22

Which type of interest is designed to return to the injured party a benefit that he or she has conferred on the other party,which would be unjust to leave with that person?

A)reliance interest
B)expectation interest
C)restitution interest
D)None of these are correct.

Question 23

The remedy of reformation

A)applies only when money damages are inadequate.
B)can be used to correct mistakes in the original contract.
C)is available only if fraud is involved.
D)is a commonly used remedy.

Question 24

Reformation is

A)a type of restitution.
B)the most common of all remedies.
C)a form of quasi-contract.
D)the least common of all remedies.

Question 25

Bob,a house builder,contracts with Ollie to build a house on Ollie's lot.The total price of the construction is $100,000,$20,000 of which will be Bob's profit.After Bob has put $10,000 worth of materials into the house,Ollie wrongfully refuses to let him finish the house.If Bob sues for damages,he will be able to collect

A)$10,000.
B)$20,000.
C)$30,000.
D)$100,000.

Question 26

​Which of the following statements concerning liquidated damages is NOT TRUE?

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.

Question 27

To "undo" a contract and put the parties where they were before they made the agreement is called

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

Question 28

The goal of expectation interest is to

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

Question 29

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy.Neal is able to sell the 500 pairs to Renny for a much lower amount.Neal then sues Solomon for damages.Neal will be able to recover

A)the amount in the liquidated damages clause.
B)the difference between Solomon's contract price and the amount paid by Renny.
C)Solomon's contract price.
D)an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else.

Question 30

In breach of the partnership agreement,Trimble,a partner in the partnership of Morris,Newt,and Oppie,Ltd.quits the partnership and goes to work for a competitor.The former partners may ask the court for

A)specific performance requiring Trimble to return to work for Morris,Newt,and Oppie,Ltd.
B)an injunction to prevent Trimble from working in competition with the former partners.
C)special damages under the rule of Hadley v.Baxendale.
D)liquidated damages as compensation for the breach.

Question 31

Tina and Leroy have a contract for the sale of a vinyl record album.Tina,the seller,breaches the contract.A court will be most likely to order specific performance if there are __________ identical copies of the record album available for sale on the market.

A)2
B)2,000
C)20,000
D)200,000

Question 32

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

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

Question 33

In a promissory estoppel case,a court will generally award

A)only reliance damages.
B)specific performance.
C)both reliance and punitive damages.
D)only nominal damages.

Question 34

Specific performance is always available in

A)agreements involving farm goods.
B)agreements involving vehicles.
C)real estate contracts.
D)employment contracts.

Question 35

To make a good faith purchase of goods similar to those in a contract is to

A)rescind.
B)breach.
C)cover.
D)mitigate.

Question 36

If a court awards nominal damages,it will generally

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 37

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,what would the most likely result be?

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 issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit.
D)The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts.

Question 38

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

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

Question 39

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.If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad,then this action would be considered a(n)

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

Question 40

All Seasons,Inc.ordered $5,000 worth of Christmas decorations from Santa,Inc.The shipment of decorations was to arrive no later than October 1,but did not arrive until December 1.All Seasons was able to purchase some of the unfulfilled order through other suppliers,but had to pay 15% more than the price under contract with Santa,Inc.As a result of the delay,All Seasons' sales were down 25%.All Seasons can recover

A)punitive damages.
B)nominal damages.
C)compensatory damages and consequential damages.
D)compensatory damages,consequential damages,and punitive damages.

Question 41

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

Question 42

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Question 43

In a construction contract,there is a $1,000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

Question 44

Larry wanted to buy a 1957 Cadillac once owned by Reggie Jackson.Larry entered into a contract with the owner agreeing to pay $102,000.The owner subsequently changed his mind.If Larry sues,what remedies are potentially available?

Question 45

Abigail signed a contract to purchase a new car from Wolf's Auto Sales Company.The seller breached its agreement by not delivering the car.Abigail went to another car dealer and purchased the same model of car at the same price.Although she had experienced a legal injury,Abigail has no actual financial or other damages as a result of the breach.If Abigail sues and wins,what type of damages will she be awarded?