Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Law
Q:
A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.
Q:
Unless a contract provides otherwise, it is assumed to be a destination contract.
Q:
A bill of lading serves as a contract for the transportation of goods.
Q:
"Unless otherwise explicitly agreed," title passes to the buyer at the time and place at which the seller physically delivers the goods.
Q:
Fungible goods are goods that cannot be delivered by physical transport.
Q:
Identification takes place when specific goods are designated as the subject matter of a sales or lease contract.
Q:
The UCC has replaced the common law concept of title in part with the concept of identification.
Q:
Title is one concept that the UCC has substituted for the common law concept of risk of loss.
Q:
An unconscionable contract is a contract so one-sided and unfair at the time it is made that enforcing it would be unreasonable.
Q:
Under the UCC, an oral contract for a sale of goods is enforceable unless payment has been made and accepted.
Q:
No oral contract is enforceable under the UCC.
Q:
The rules governing firm offers apply to all merchants.
Q:
If a contract for a sale of goods does not include a quantity term, it is a requirements contract.
Q:
If a contract for a sale of goods does not include a price term, a reasonable price can be determined by looking at the market for the goods.
Q:
Under the UCC, a contract for a sale of goods that includes open terms is void.
Q:
Under the UCC, the validity of a contract depends on its price term.
Q:
A lessor is a party who acquires a right to the possession and use of goods under a lease.
Q:
A lessee is a party who transfers a right to the possession and use of goods under a lease.
Q:
A consumer lease is exempted from coverage under the UCC.
Q:
The UCC imposes the same rules of conduct on all parties in all circumstances.
Q:
A sale of "things attached" to realty is always considered a sale of goods.
Q:
Article 2 of the UCC governs contracts for sales of services.
Q:
Stocks are an example of property that does not come under UCC Article 2.
Q:
Article 2 of the UCC governs contracts for sales of goods.
Q:
General Equity Corporation enters into a contract with Honi, who agrees to create artwork for General's main office building. Honi delays and eventually refuses to perform. Meanwhile, General contracts to sell the building to Ideal Investments, Inc., but before the transaction is complete, Jewel Funds Company offers to pay a higher price. General refuses to transfer the building to Ideal. In separate suits by General against Honi and by Ideal against General, each plaintiff seeks specific performance. How might the court rule in each case, and why?
Q:
National Drilling Company ships its only pump to American Hydraulics Corporation, the manufacturer, for repair. National hires Overland Transport, Inc., to take the pump to American Hydraulics and to return it to National as soon as the repair is complete. National is forced to suspend operations without a pump, but Overland does not know this. National expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day, National rents a pump at a cost of $100 per day. Overland delays five more days before returning the pump. National files a suit against Overland, asking for compensatory, consequential, and punitive damages. Will National recover?
Q:
To avoid liability for intentional injuries, Vermont Power Corporation includes in its contracts an exculpatory clause. This is
A.enforceable if the other parties are protected from liability.
B.enforceable if the other parties consent to it.
C.enforceable if the other parties have equal bargaining power.
D.not enforceable.
Q:
Creekside Property Corporation enters into a contract with Downstream 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.a limitation-of-liability clause.
B.an exculpatory clause.
C.an illegal clause.
D.a quasi contract.
Q:
A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is
A.enforceable because the parties are protected from liability.
B.enforceable because the parties consented to it.
C.enforceable if the parties have equal bargaining power.
D.not enforceable.
Q:
Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Karson says that their deal is off. Jaime can most likely recover
A.in quasi contract.
B.in reformation.
C.in restitution.
D.on the parties' existing contract.
Q:
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.damages.
B.reformation.
C.rescission.
D.specific performance.
Q:
Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely
A.award damages to Dino.
B.cancel Dino and Eve's contract.
C.order Eve to perform the contract.
D.reform Dino and Eve's contract.
Q:
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.
Q:
Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek
A.damages.
B.reformation.
C.rescission.
D.specific performance.
Q:
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 bargain.
Q:
Rural 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. If the parties rescind the contract, Shovel's refund of the payment would be
A.a penalty.
B.liquidated damages.
C.restitution.
D.specific performance.
Q:
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.a liquidated damages clause.
B.a mitigation of damages clause.
C.a nominal damages clause.
D.a penalty clause.
Q:
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable because it is
A.a liquidated damages clause.
B.a mitigation clause.
C.a nominal damages clause.
D.a penalty clause.
Q:
Mikayla enters into a contract with Logan to provide surface material for Mikayla's tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is
A.an excessive estimate of the loss on a breach.
B.a reasonable estimate of the loss on a breach.
C.designed to penalize the breaching party.
D.intended to quickly provide cash to the nonbreaching party.
Q:
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
A.do nothing.
B.reduce the damages that Scott might otherwise suffer.
C.rescind the contract with Rig.
D.punish Rig and set an example to deter others from similar acts.
Q:
Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents
A.a breach of contract.
B.a mitigation of damages.
C.rescission and restitution.
D.specific performance.
Q:
Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to
A.avoid reletting the premises to recover damages from Ray.
B.make reasonable efforts to relet the premises to mitigate damages.
C.relet the premises to recover damages from Ray.
D.sell the premises to recover damages from Ray.
Q:
Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000. On April 30, Little cancels the contract. Kris finds another job during May but earns only $3,000. Kris files a suit against Little. As compensatory damages, Kris can recover
A.$3,000.
B.$2,000.
C.$1,000.
D.$0.
Q:
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.
Q:
Bret contracts to work for City Construction Corporation (CCC) during July for $4,500. On June 30, CCC cancels the contract. Bret declines a similar job with Downtown Builders, Inc., which would have paid $4,000. Bret files a suit against CCC. As compensatory damages, Bret can recover
A.$4,500.
B.$4,000.
C.$500.
D.$0.
Q:
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry
A.compensatory damages.
B.consequential damages.
C.nominal damages.
D.punitive damages.
Q:
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages toA.establish, as a matter of principle, that QuikBilt acted wrongfully.B.provide Pure with funds for a foreseeable loss beyond the contract.C.provide Pure with funds for its loss of the bargain.D.punish QuikBilt and deter others from similar acts.
Q:
Medical Centre enters into a contract with Local Motion Fitness Club for discounted memberships for the Centre's employees. If the Club breaches the contract and the Centre enters into a contract with KO Sports for the same service at a lower price, the Centre might be awarded nominal damages to
A.establish, as a matter of principle, that the Club acted wrongfully.
B.provide the Centre with funds for a foreseeable loss beyond the contract.
C.provide the Centre with funds for its loss of the bargain.
D.punish the Club and set an example to deter others from similar acts.
Q:
Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover
A.$13,000.
B.$10,000.
C.$3,000.
D.$0.
Q:
Dobry Die & Mold, Inc., enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equipment. If Chet's delays the repair for five days, knowing that Dobry will lose a certain percentage of profit for the delay, Dobry might be awarded consequential damages to
A.establish, as a matter of principle, that Chet's acted wrongfully.
B.provide Dobry with funds for a foreseeable loss beyond the contract.
C.provide Dobry with funds for its loss of the bargain.
D.punish Chet's and set an example to deter others from similar acts.
Q:
Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit against Mona. As consequential damages, NDI can recover
A.the cost of a new computer.
B.the difference between Mona's price and the actual cost of repair.
C.the loss of profit from the lost sale.
D.nothing.
Q:
Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside sells the acreage to Fealty Realty, and fails to go through with DA's deal on the agreed date, when the market price of the land is $17,000. DA may recover
A.$17,000.
B.$15,000.
C.$2,000.
D.$0.
Q:
Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover
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.
Q:
Fact Pattern 12-1
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development.
Refer to Fact Pattern 12-1. If Desmond breaches the contract, Estelle's remedy would most likely be
A.a certain ratio of the amount that Desmond has in liquid funds.
B.a percentage of Desmond's unrealized profit.
C.the difference between the land's contract and market prices.
D.specific performance.
Q:
Fact Pattern 12-1
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development.
Refer to Fact Pattern 12-1. If Estelle breaches the contract, Desmond's remedy would most likely be
A.a certain ratio of the amount that Estelle has in liquid funds.
B.a percentage of Estelle's unrealized profit.
C.the difference between the land's contract and market prices.
D.specific performance.
Q:
Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside
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.
Q:
Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to
A.establish, as a matter of principle, that ISI acted wrongfully.
B.provide Hybrid with funds for a foreseeable loss beyond the contract.
C.provide Hybrid with funds for its loss of the bargain.
D.punish ISI and set an example to deter others from similar acts.
Q:
Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $1,000, but Regal fails to deliver. Pam buys the computer elsewhere for $1,500. Pam's measure of damages is
A.$500 only.
B.$500 plus incidental damages.
C.incidental damages only.
D.$0.
Q:
Outbound Travel Agency agrees to hire Petra for one year at a salary of $1,000 per week. When Outbound cancels the contract, Petra spends $2,000 to obtain a similar job that pays $750 per week for a year. Petra is entitled to recover
A.the amount of the wages that Outbound promised only.
B.the difference between the wages at the two jobs only.
C.the difference between the wages at the two jobs plus $2,000.
D.$2,000 only.
Q:
Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee Stand chain. The next day, Damien tells Clarice that he has accepted a job in San Francisco and cannot design her campaign. She files a suit against Damien. As compensatory damages, she can recover
A.$100,000.
B.$10,000.
C.$1,000.
D.$0.
Q:
Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can
A.do nothing but make a deal with a different service provider.
B.do nothing but temporarily suspend operations and wait.
C.file a criminal complaint against Even-Flo.
D.sue Even-Flo for damages.
Q:
A contract can include a provision stating that no damages can be recovered for certain types of breaches.
Q:
Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that the clause excuses.
Q:
A contract may include a clause stating that no damages can be recovered for a certain type of breach.
Q:
A party seeking to recover in quasi contract must show that he or she acted without reasonably expecting to be paid.
Q:
A party seeking to recover in quasi contract must show that he or she has been unjustly enriched.
Q:
Quasi contracts allow the courts to act as if a contract exists when there is no contract.
Q:
Reformation allows a court to rewrite a contract to reflect the parties'TRUE intentions.
Q:
Specific performance is the remedy customarily used when one party has breached a contract for personal services.
Q:
Specific performance is the remedy customarily used when one party has breached a contract for a sale of land.
Q:
Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.
Q:
A breach of contract may entitle the innocent party to rescind the contract.
Q:
To rescind a contract, each party essentially advances to the position he or she would have been in if the contract had been fully executed.
Q:
Liquidated damages are damages that are certain in amount.
Q:
Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those damages.
Q:
The duty owed under the mitigation of damages doctrine depends on the situation.
Q:
Nominal damages normally establish that the defendant acted wrongly.
Q:
Punitive damages are never awarded in breach of contract actions.
Q:
Punitive damages are almost never available in contract disputes.
Q:
Damages are awarded for whatever injury a nonbreaching party suffers, whether or not the breaching party could have foreseen the injury.