332. Bart was supposed to deliver 100,000 firecrackers to Lisa by June 1, but his factory explodes in April so suspends
operations. The contract:
a. has suffered a novation
b. has incurred a rescission
c. has incurred the failure of a condition precedent
d. has incurred an accord
e. none of the other choices
333. Under the doctrine of discharge by impossibility of performance, impossibility occurs when:
a. a party to a contract dies
b. a law is passed making performance illegal
c. the subject of the contract is destroyed
d. none of the other choices
e. all of the other specific choices
334. Mercedes promises to deliver 10,000 cars to Avis by January 30. It does not get the cars delivered because its
primary factory was destroyed in a fire. This problem would be called:
a. rescission
b. failure of a condition precedent
c. failure of a condition concurrent
d. failure of a condition subsequent
e. impossibility
335. Susan agrees to buy Jan’s car for $4,000. Susan is to bring the money the next day. That night Jan wrecks the car.
Susan:
a. must give $4,000 for the car and can collect the insurance money, if there is any
b. must give $4,000 for the car but Jan must be allowed time to get the car repaired
c. must buy the car, but can pay less than $4,000 since the car is now worth a lot less
d. does not have to buy the car
e. none of the other choices
336. If, during a contract, a party incurs “extreme or unreasonable difficulty, expense, injury or loss” the courts may hold
that what applies:
a. novation
b. rescission
c. impracticability
d. delegation
e. none of the other choices
337. If, during a contract, a party incurs “extreme or unreasonable difficulty, expense, injury or loss” the courts may call
this impracticability or:
a. novation b.
rescission c.
frustration d.
delegation
e. none of the other choices
338. Which of the following is a type of damage award that may be granted by a court as a remedy for breach of
contract:
a. compensatory
b. expectancy
c. liquidated
d. nominal
e. all of the other specific choices are correct
339. Which of the following is a type of damage award that may be granted by a court as a remedy for breach of
contract:
a. compensatory
b. expectancy
c. nominal
d. all of the other specific choices are correct
e. none of the other specific choices are correct
340. The idea that breach of contract generally only allows recovery for profits and costs incurred due to the breach is
called:
a. the compensatory rule
b. the economic loss rule
c. the remedy doctrine
d. contract damages doctrine
e. none of the other choices
341. The idea that breach of contract generally only allows recovery for profits and costs incurred due to the breach is
called:
a. the compensatory rule
b. the efficient breach rule
c. the remedy doctrine
d. contract damages doctrine
e. none of the other choices
342. Under the economic loss rule, when a breach of contract does not include a tort, such as injury to persons, the
damages:
a. only relate to economic losses suffered from the breach
b. are limited to half the economic losses suffered from the breach
c. are not related to the monetary losses suffered from the breach
d. must exceed the direct costs suffered from the breach
e. none of the other choices are correct
343. The award to a prevailing party in suit for breach of contract to recover costs incurred due to relying on the
promise of the other party is called:
a. liquidated damages
b. nominal damages
c. punitive damages
d. compensatory damages
e. none of the other choices
344. The award to a prevailing party in suit for breach of contract to recover costs incurred due to relying on the
promise of the other party is called:
a. liquidated damages
b. nominal damages
c. punitive damages
d. mitigation damages
e. none of the other choices
345. In a breach of contract case, compensatory damages are damages that:
a. allow the party suffering the breach to recover costs incurred by relying on the promise of the other party
b. allow the party suffering the breach to recover lost profits
c. allow the party suffering the breach to gain economically by imposing “affirmative punishment” on the
breaching party
d. exceed what the party suffering the breach lost due to the breach
e. none of the other choices are correct
346. Profits you reasonably would have earned had the other party to a contract not breached are called:
a. nominal damages
b. profitable damages
c. liquidated damages
d. expectancy damages
e. punitive damages
347. Profits you reasonably would have earned had the other party to a contract not breached are called:
a. nominal damages
b. profitable damages
c. liquidated damages
d. punitive damages
e. none of the other choices
348. In a breach of contract case, expectancy damages are:
a. meant to cover the profits the party suffering the breach of contract reasonably expected to make if the
contract had been fulfilled
b. not meant to cover the profits the party suffering the breach of contract reasonably expected to make if the
contract had been fulfilled
c. damages that allow the party suffering the breach to recover costs incurred due to relying on the promise of
the other party
d. meant to compensate for mental distress suffered by the party suffering the breach
e. none of the other choices are correct
349. In DeRosier v. Utility Systems of America, Inc. where DeRosier sued Utility Systems of America, Inc. for
dumping too much fill dirt on his property, the appeals court held that:
a. the trial court was right to award DeRosier general damages so he could have the excess dirt removed, but
wrong to award additional consequential damages since there was no claim for delay damages in the
pleadings or discovery
b. the trial court was wrong to award DeRosier general damages so he could have the excess dirt removed, but
right to award additional consequential damages since there was a claim for delay damages in the pleadings or
discovery
c. the trial court was wrong to award any damages to DeRosier
d. the trial court was correct is all its awards to DeRosier
e. DeRosier‘s permit for dirt dumping was invalid
350. In DeRosier v. Utility Systems of America, Inc. where DeRosier sued Utility Systems of America, Inc. for
dumping too much fill dirt on his property, the appeals court held that:
a. DeRosier‘s permit for dirt dumping was invalid
b. the trial court was wrong to award DeRosier general damages so he could have the excess dirt removed, but
right to award additional consequential damages since there was a claim for delay damages in the pleadings or
discovery
c. the trial court was wrong to award any damages to DeRosier
d. the trial court was correct is all its awards to DeRosier
e. none of the other choices are correct
351. The traditional Japanese view is that:
a. a contract is secondary in a business transaction
b. a contract is primary in a business transaction
c. a contract is unnecessary in a business transaction
d. contracts are never binding
e. contracts are based on traditional family relationships
352. In general, contracts in Japan (compared to business contracts in the U.S.) tend to be:
a. more formal and of shorter duration
b. more formal but of longer duration
c. less formal and of shorter duration
d. less formal and of longer duration
e. just about the same
353. are an amount specified in the contract to be paid in the event of breach.
a. Compensatory damages
b. Liquidated damages
c. Real damages
d. Predetermined damages
e. Nominal damages
354. are an amount specified in the contract to be paid in the event of breach.
a. Compensatory damages
b. Nominal damages
c. Real damages
d. Predetermined damages
e. none of the other choices are correct
355. Specific damages to be paid in case of breach, that the parties agree to in the contract in advance of a breach are
called damages:
a. compensatory
b. expectancy
c. liquidated
d. nominal
e. punitive
356. Specific damages to be paid in case of breach, that the parties agree to in the contract in advance of a breach are
called damages:
a. compensatory
b. penalty
c. punitive
d. nominal
e. none of the other choices
357. Liquidated damages:
a. must be reasonably related to actual losses that could be suffered
b. need not be related to actual losses that could be suffered
c. must be less than the actual losses that could be suffered
d. are usually much higher than the actual losses that could be suffered
e. are only available in some states
358. Liquidated damages:
a. are only available in some states
b. need not be related to actual losses that could be suffered
c. must be less than the actual losses that could be suffered
d. are usually much higher than the actual losses that could be suffered
e. none of the other choices are correct
359. A court award of $1.00 in damages would be called:
a. compensatory
b. expectancy
c. liquidated
d. nominal
e. punitive
360. A court award of $1.00 in damages would be called:
a. compensatory
b. expectancy
c. liquidated
d. punitive
e. none of the other choices
361. Nominal damages can be important because:
a. they serve as a warning to other who might breach a contract
b. injured parties must be compensated for all their losses
c. it is important to punish severely those who breach contracts
d. proof of breach may be related to other legal issues
e. none of the other choices are correct
362. Exemplary damages are also called:
a. special
b. punitive
c. nominal
d. liquidated
e. compensatory
363. Exemplary damages are also called:
a. economic loss
b. compensatory
c. nominal
d. liquidated
e. none of the other choices
364. punish the wrongdoer in a breach of contract case by allowing the plaintiff to receive relief beyond
compensatory or expectancy damages because of a tort.
a. Punitive damages
b. Real damages
c. Super damages
d. Liquidated damages
e. Nominal damages
365. punish the wrongdoer by allowing the plaintiff to receive relief beyond compensatory or expectancy damages
because of a tort.
a. Nominal damages
b. Real damages
c. Super damages
d. Liquidated damages
e. none of the other choices are correct