BUS 346 Week 9 Quiz | Assignment Help | Mercer University
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- 11 Sep 2020
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BUS 346 Week 9 Quiz | Assignment Help | Mercer University
Exam 9: Chapter 13
Question 1
A contract may include
a clause stating that damages will be limited to a maximum amount.
o
True
o
False
Question 2
Specific performance
will not be granted unless the party’s legal remedy is inadequate.
o
True
o
False
Question 3
Any breach entitles the
no breaching party to sue for damages.
o
True
o
False
Question 4
Consequential damages
are awarded for damage caused by special circumstances beyond a contract.
o
True
o
False
Question 5
The standard measure of
compensatory damages is the value of breaching party’s promised performance.
o
True
o
False
Question 6
Anticipatory
repudiation discharges a contract.
o
True
o
False
Question 7
An occurrence or event
that makes performance temporarily impossible operates to discharge the
parties’ contractual duties.
o
True
o
False
Question 8
Voluntary consent may
be lacking because of misrepresentation but not because of a mistake.
o
True
o
False
Question 9
Ordinarily, the remedy
for a seller’s breach of a contract for a sale of real estate is specific
performance.
o
True
o
False
Question 10
A contract will be
discharged if supervening circumstances make it impossible to attain the
purpose both parties had in mind when they made the contract.
o
True
o
False
Question 11
A party who in good
faith performs substantially all of the terms of a con-tract can enforce the
contract against the other party.
o
True
o
False
Question 12
An innocent party does
not need to suffer an injury to collect damages as a result of a
misrepresentation.
o
True
o
False
Question 13
A party seeking to
recover compensatory damages cannot also recover in-cidental damages.
o
True
o
False
Question 14
Duress is a defence to
the enforcement of a contract, but not a ground for rescission of a contract.
o
True
o
False
Question 15
As a general rule,
contract duties can be delegated.
o
True
o
False
Question 16
A liquidated damages
provision in a contract specifies a certain amount to be paid in the event of a
default or breach of contract.
o
True
o
False
Question 17
Words or terms in
contracts that are subject to more than one reasonable interpretation can lead
to bilateral mistakes.
o
True
o
False
Question 18
If no time for
performance is stated in a contract, any time is acceptable.
o
True
o
False
Question 19
A material fact is a
fact that a reasonable person would consider important when determining his or
her course of action.
o
True
o
False
Question 20
Reformation is an
equitable remedy that allows a court to rewrite a contract to suit itself.
o
True
o
False
Question 21
Garth owns two
all-terrain vehicles (ATVs), worth $1,000 and $500, re-spec-tively. Helen
agrees to buy “Garth’s ATV” for $750. Garth believes, in good faith, that he is
selling the $500 ATV. Helen believes, in good faith, that she is buying the
$1,000 ATV. In this situation
o
Garth is entitled to $750 for the $500
ATV.
o
Helen is entitled to the $1,000 ATV for
$750.
o
Helen must buy both ATVs for $1,500.
o
there is no contract.
Question 22
Loren and Kendra enter
into a contract for the distribution of Loren’s produce to local restaurants
for which he agrees to pay Kendra. Kendra transfers her right to payment under
the contract to County Bank. This transfer is
o
a delegation.
o
an assignment.
o
a third party beneficiary contract.
o
prohibited.
Question 23
Resourced Minerals Inc.
agrees to deliver ten tons of coal to Static Energy Corporation. The agreement
states that delivery is to be within “9” days, although the parties intend “90”
days. Resourced Minerals cannot convince Static Energy to amend the contract.
Resourced Minerals should seek
o
damages.
o
reformation.
o
rescission.
o
specific performance.
Question 24
Byron agrees to sell to
Charity, for $1,500, a remote parcel of land. They be-lieve the land to be
worthless, but beneath it is a gold mine. Byron can
o
not rescind the contract.
o
rescind the contract on the basis of
fraud.
o
rescind the contract on the basis of
mistake.
o
rescind the contract on the basis of
undue influence.
Question 25
River Vista Inc. enters
into a contract with Stable Realty Management to manage and maintain River
Vista’s commercial real estate. Their contract provides that neither party can
recover damages for a non-fraudulent or unintentional breach. This is
o
a limitation-of-liability clause.
o
an exculpatory clause.
o
a liquidated damages clause.
o
a quasi contract.
Question 26
Dharma enters into a
contract to manage the operations of Esther’s dental office for one year,
renewable for subsequent one-year terms. If this contract is discharged like
most contracts, it will be
o
cancelled.
o
breached.
o
altered.
o
performed.
Question 27
Drainage &
Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky
Aquatic Corpo-ration. Before either party has performed, rescission of this
con-tract requires
o
a mutual agreement to rescind.
o
an accord and satisfaction.
o
a notation.
o
a settlement agreement.
Question 28
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
o
a penalty.
o
liquidated damages.
o
restitution.
o
a breach of contract.
Question 29
Rikki agrees to sell
her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant
not to open a competing business within a hundred-mile radius for ten years. If
this covenant is later determined to be unreasonable, the appropriate remedy is
most likely
o
damages.
o
reformation.
o
rescission.
o
specific performance.
Question 30
Garland induces Jules
to enter into a contract for the purchase of a Chef’s Burger House restaurant.
Garland knowingly misrepresents a number of material features about the
restaurant and the business. When Jules discovers the truth, he can
o
not rescind the contract because Jules
assumed the risk that the bargain would prove to be different from what he
thought.
o
rescind the contract on the basis of
fraud.
o
rescind the contract on the basis of
mistake.
o
rescind the contract on the basis of
undue influence.
Question 31
Nora enters into a
contract with Oceanic Transport, Inc., to insure and ship a painting from
France to the United States for a certain price. But Oceanic makes a mistake in
adding the costs, which results in a contract price that is $1,000 less than
the true cost. Most likely, a court would
o
allow the parties to rescind the
contract.
o
award damages to Nora for the mistake.
o
award damages to Oceanic for the
mistake.
o
enforce the contract as is.
Question 32
Drake enters into a
contract with Eve, who claims to have access to a stock-trading algorithm that
will multiply an investment many times over. When the results do not match this
promise, Drake learns that Eve does not have access to any unique software and
files a suit against her, alleging fraud. Proof of an injury is required to
o
recover damages.
o
rescind the contract.
o
undo Eve’s influence.
o
punish the defendant.
Question 33
Gliding Light, LLC, and
Hang Gliders, Inc., are parties to a contract. They subse-quently agree that
High Riders Inc. should take Gliding Light’s place and assume all of its rights
and duties under the contract. This is
o
a mutual agreement to rescind.
o
an accord and satisfaction.
o
a novation.
o
a settlement agreement.
Question 34
Emil enters into a
contract to buy Foley’s cultivated bottomland and hill and bench acreage if
County AgriCredit will lend Emil the funds to pay for the land. Emil’s duty to
perform is
o
absolute.
o
conditional.
o
manifest.
o
irresolute.
Question 35
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
o
the cost of new turf.
o
the difference between Damon’s price and
the actual cost of repair.
o
the loss of profit from the cancelled
game.
o
nothing.
Question 36
Ambrose enters into a contract
to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery.
If Ambrose breaches the contract, Belle Vista’s remedy would most likely be
o
a certain ratio of the amount that
Ambrose expected to invest in the project.
o
a percentage of Ambrose’s unrealized
profit.
o
the difference between the land’s
contract and market prices.
o
specific performance.
Question 37
Dondi contracts to buy
a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee
fails to deliver. Dondi buys the appliance else-where for $5,500. Dondi’s
measure of damages is
o
$1,000.
o
$1,000 plus incidental damages.
o
incidental damages only.
o
$0.
Question 38
Fact Pattern 13–1
(Questions 4–6 apply)
Lewis, an employee of
Silos, Inc., makes a substantial mathematical error in totaling the estimated
costs for a project for which AgriCo-op is seeking bids. Consequently, Silos’s
bid is significantly low.
Refer to Fact Pattern
13–1. Any contract with AgriCo-op that includes the mistake may be rescinded
o
if the mistake involves a material fact.
o
if the mistake involves any fact.
o
if the mistake is one of value or
quality.
o
under no circumstances.
Question 39
Carpets n’ Rugs, Inc.,
agrees to carpet Downtown Realty’s offices, using a particular brand of durable
carpet. Carpets n’ Rugs completes the
job but uses a dif-ferent brand of wear- and weather-resistant carpeting. This
is most likely
o
a good-faith reason for Downtown Realty
to rescind the contract.
o
a material breach.
o
complete performance.
o
substantial performance.
Question 40
Seth offers to buy a
house from Tia for less than Tia paid for it, stating that he would “hate to
see anything bad happen to Tia or her house.” Tia agrees to sell. Regarding
this agreement, a court would likely
o
enforce it.
o
not enforce it.
o
reform it to reflect the true market
value of the property.
o
order the parties to renegotiate the
price.
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