Reference no: EM13999464

Question 1: A contract that is prepared on a standardized, pre-printed form is referred to as a boilerplate contract.

True

False

Question 2: A contract represents the "meeting of the minds" of the parties to an agreement.

True

False

Question 3: Is it true that promissory estoppel can be used as a means of prosecution a cause of action?

True

False

Question 4: Contracts for unique talents, abilities, and skills are referred to as:

A. construction agreements
B. personal services contracts
C. boilerplate contracts
D. voidable contracts

Question 5: What type of damages are not ordinarily available for a breach of contract?

A. Compensatory
B. Liquidated
C. Consequential
D. Punitive

Question 6: A waiver may also be called:

A. a release
B. a disclaimer
C. an exculpatory clause
D. all of the above

Question 7: Trial courts in the federal system are referred to as United States District Courts.

True

False

Question 8: The burden of proof in a civil case is "preponderance of the credible evidence."

True

False

Question 9: Judge-made law is also referred to as:

A. Constitutional Law
B. Injunction
C. Common Law
D. Civil Law

Question 10: Which state is not a member of the 9th Circuit?

A. California
B. Montana
C. Nevada
D. New York

Question 11: The concept that two or more parties can agree on anything they want as long as it is legal, and such an enforceable agreement will be upheld by a court is best known as:
A. Benefit of the bargain
B. Implied contract
C. Freedom of contract
D. Breach of Contract

Question 12: Which of the following is NOT an element of the contract law formula?

A. Offer
B. Acceptance
C. Consideration
D. Establishment

Question 13: Advertisements on the Internet, television, or radio are generally held to be:

A. Offers under common law
B. Acceptances under common law
C. Invitations to deal under common law
D. Auctions under common law

Question 14: When both parties agree that their contractual relationship is simply not working, one of the contract remedies that would clearly end the relationship would be:

A. Reformation
B. Specific Performance
C. Liquidated Damages
D. Rescission

Question 15: Lost profits which could have been recovered had a breaching party performed as they had promised might be characterized as what type of damages?

A. Liquidated damages (discussed Vanderbilt)
B. Consequential or special damages (mentioned in Vanderbilt and demonstrated in class using the case of Miami Dolphins v. Ricky Williams)
C. Incidental (discussed in class)
D. Natural

Question 16: A contract may be defined as:

A. a nonbinding promise to act.
B. a legally binding agreement, or a promise or agreement that may be enforced in court.
C. an agreement that always involves parties who are not family members.
D. an agreement that always involves people over the age of twenty-one.

Question 17: The purpose of compensatory damages in contract law is:

A. to provide the non-breaching party with sufficient money to pay for any damages that were actually sustained
B. to severely punish the breaching party.
C. to provide a huge reward to the breaching party.
D. to provide the breaching party with a way to mitigate damages.

Question 18: A forum-selection clause indicates:

A. the geographic/physical location for the resolution of any dispute arising under the contract
B. the specific court in which arbitration proceedings will be held.
C. which state's laws will govern any dispute that arises under the contract.
D. which nation's laws will govern any dispute that arises under the contract.

Question 19: Consequential damages are:

A. damages in a very small amount, usually $1, to show that the defendant acted wrongfully.
B. special damages that are caused by circumstances beyond the contract itself but that arise as a direct consequence of the contract's breach.
C. damages that compensate a party for actual losses directly resulting from the breach.
D. damages that punish a breaching party.

Question 20: When a court is later called upon to determine the existence of a contract or interpret whether "a meeting of the minds" exist (i.e. offer + acceptance), which theory do courts use in their analysis?

A. Unauthorized practice of law
B. Subjective theory of contracts
C. Collective bargaining agreement
D. Objective theory of contracts

Question 21: Consider a term used frequently in the legal profession, "cite." Put a check mark in the box next to its correct meaning.

A. Interpretation of statutory law
B. To identify the location of information or a quotation.
C. The ability to see, i.e., one of the five senses.
D. The location of the source of information or a quotation.

Question 22: Prue offers to buy a book on Salem witches owned by Phoebe and to pay Phoebe $20 in exchange for the book. Phoebe accepts the offer and delivers the book to Prue. Is there consideration here?

Yes = True

No = Fales

True

False

Question 23: Are these statements correct?

Reliance damages put the non-breaching party back in the same position the party was before the contract was made. In effect, the court undoes the contract. It does so by awarding the expenses the non-breacher incurred in reliance on the contract.

Compare consequential/expectation damages.

When the court awards consequential or expectation damages it completes the contract by putting the non-breacher in as good a position as he or she would have been had the contract been performed as promised.

True

False

Question 24: Security Stove hired American Express to deliver a new stove to a trade show. American Express failed to deliver a crucial part, the part that was the innovation that made the stove worth showing. We can begin by figuring out Security Stove's expectation damages.

If American Express had delivered the stove, Security Stove would have been able to show the stove and as a result would have made some sales in the future (they were not trying to make any sales at the show), and Security Stove would have had to pay the expenses involved in going to the show. As a result of the breach, Security Stove made no sales from the show, but had all the same expenses. Assume the company properly mitigated.

Under the expectation rule, Security Stove is entitled to enough money to put them in as good a position as they would have been in had American Express delivered the stove.

True

False

Question 25: Whenever a contract is breached, the non-breaching party may seek specific performance if they really want the other party to have to perform. True or False?

True

False