Civil Law Questions

Legal Concepts61) Which of the following hold true in case of liquidated damages?A) For liquidated damages to be lawful, the actual damages must be precisely determined.B) Liquidated damages are enforceable even if actual damages are later determined to bedifferent.C) A liquidated damages clause is considered a penalty if actual damages are not determinable inadvance.D) If a liquidated damages clause is found to be a penalty, it continues to be enforceable.

Factual Application13Copyright © 2013 Pearson Education, Inc.60) Parties to a contract agree in advance to pay ________ damages if the contract is breached.A) nominalB) compensatoryC) liquidatedD) consequential

Legal Concepts42) Nett Labs orders 30 desktop computers from iDeal, a local computer dealer. Nett Labsrequires that each computer has a 2.6 GHz processor, 500 GB hard disk and Windows operatingsystem. iDeal supplies 30 desktop computers, each with a 2 GHz processor, 500 GB hard diskand Windows operating system. Which of the following terms hold true for iDeal's performance?A) complete performanceB) material breachC) substantial performanceD) anticipatory breach

Legal Concepts11Copyright © 2013 Pearson Education, Inc.54) QuickClicks, an online advertising company makes a contract to purchase six computersfrom Comptail, a local retailer, for $20,000. However, Comptail breaches the contract by notdelivering the computers on time. The next day, QuickClicks manages to purchase six computersfrom another retailer for $18,000 and receives immediate delivery. QuickClicks can bring alawsuit against Comptail to recover ________ damages.A) consequentialB) compensatoryC) nominalD) liquidated

Factual Application59) Andrew is employed as a Chief Financial Officer of EasyMoney firm in New York City, fora salary of $200,000 per year on a three-year contract. His employer terminates Andrew with twoyears left in the contract. Andrew accepts employment as a financial analyst at a different firmthat pays $150,000 per year. Which of the following hold true in this scenario?A) Andrew cannot take any legal action against his formal employer after accepting another job.B) Andrew's former employer must pay Andrew two years' worth of his former salary.C) Andrew can only sue to receive nominal damages.D) Andrew can sue his prior employer and recover $100,000.

Legal Concepts62) ________ is an action to undo a contract.A) RescissionB) RecessionC) RestitutionD) Retribution

Legal Concepts41) When does a minor breach occur?A) when a party rescinds the contract before actual work on the contract has commencedB) when a party renders substantial performance of his or her contractual dutiesC) when the party who is being offered goods or services rescinds the contractD) when the party who is offering goods or services rescinds the contract

Factual Application8Copyright © 2013 Pearson Education, Inc.43) A(n) ________ breach of a contract occurs when a party renders inferior performance of hisor her contractual obligations.A) materialB) minorC) anticipatoryD) defensive

Legal Concepts53) Which of the following statements is true of nominal damages?A) They are also known as compensatory damages.B) Only damages above $1,000 can qualify as nominal damages.C) Most courts favor nominal damages lawsuits.D) They are awarded even when a breach did not result in financial loss.

Factual Application52) ________ damages are awarded when the nonbreaching party sues the breaching party eventhough no financial loss has resulted from the breach.A) ConsequentialB) CompensatoryC) NominalD) Liquidated

Legal Concepts63) ________ is a term that denotes the return of goods or property received from the other partyto undo a contract.A) RescissionB) RecessionC) RestitutionD) Retribution

Legal Concepts14Copyright © 2013 Pearson Education, Inc.64) Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1,000 forshoveling the snow from his driveway throughout winter. Jenson, who was paid before workcommenced, breached the contract on the very first day. He should refund $1,000 to Johnson as________.A) compensatory damagesB) restitutionC) liquidated damagesD) consequential damages

Legal Concepts44) Which of the following constitutes material breach?A) inferior performanceB) substantial performanceC) anticipatory repudiationD) rescission without notification

Legal Concepts56) Which of the following statements is true of mitigation of damages?A) The breaching party must make efforts to mitigate damages resulting from the breach ofcontract.B) If an employer breaches an employment contract, he or she owes a duty to mitigate damagesby trying to find substitute employment for the employee.C) The extent of mitigation of damages required is common to all kinds of contracts.D) If an employer breaches a contract, the employee is only required to accept comparableemployment.

Factual Application58) An employee who has been dismissed improperly accepts a job that is less comparable.Which of the following is a subsequent course of action?A) The employee can sue the prior employer for damages.B) The previous employer must offer salary compensation on a monthly basis, until theemployee's new salary becomes comparable to that offered by the previous job.C) The employee can sue the former employer to recover his or her salary for one year.D) The employee can take no legal action against his or her formal employer after accepting adifferent job.

Legal Concepts50) Kinlin, a furniture retailer has a contract with William Luellin, a carpenter. The agreementstates that Luellin must deliver five tables and that Kinlin would pay $2,000 per table. However,Luellin manages to deliver only four tables and Kinlin needs to buy the fifth table from anothersupplier for $3,000. How much money can Kinlin recover from Luellin?A) $10,000B) $2,000C) $3,000D) $1,000

Legal Concepts12Copyright © 2013 Pearson Education, Inc.57) Rudy was working as an applications developer in a software firm in San Jose. Hisemployment contract was for three years at $100,000 a year. Two years into the contract, Rudy'semployer fired him as a part of downsizing. Which of the following jobs could Rudy take inorder to mitigate damages?A) Any job that offers $100,000 or more a year.B) Another software applications developer job, irrespective of the salary.C) A job in any software firm in any part of the country.D) An applications developer job in San Jose for $100,000 a year or more.

Factual Application65) A ________ is an order of the court that enables a government officer to seize property of thebreaching party and sell it at auction to satisfy a judgment.A) writ of attachmentB) writ of garnishmentC) specific performanceD) liquidation of damages

Legal Concepts46) Which of the following constitutes a case of anticipatory breach?A) It occurs when a contracting party fails to inform the other party in advance about nonperformanceof his or her contractual duties when due.B) In case of anticipatory breach, nonbreaching party's obligations under the contract are notdischarged.C) The nonbreaching party must wait till performance is due to sue the breaching party.D) Anticipatory breach can be derived from the conduct of the breaching party without beingexpressly stated by that party.

Legal Concepts9Copyright © 2013 Pearson Education, Inc.47) When a party commits an anticipatory breach, the nonbreaching party ________.A) must wait until the performance was due before suingB) is immediately discharged from his or her own dutiesC) cannot seek damages because he or she received advance notice of the breachD) loses his or her right to sue after the due-date for performance is reached