Reference no: EM133358761

Questions

1. Andrew sold one thousand palm trees from a property he owned to Bob at the cost of $150 per tree. Andrew then sold the property to Cliff. Before Cliff moved onto the property, Bob entered the property and removed the trees. Unfortunately, Andrew did not have authority to sell the trees separately from the property, but sale of the property was appropriate and the transfer to Cliff was valid. Cliff sued Andrew and Bob for the value of the trees. Instead of asking for the $150 per tree that Andrew had received from Bob, Cliff asked for $300 per tree and presented evidence that it cost $300 per tree to have the trees replaced. Bob and Andrew opposed that cost as a measure of damages.

Choose the amount of damages that you think Cliff should recover.

a . $300,000

b. $100,000

c. $400,000

d. $150,000

2. Jared's taxicab was rendered undrivable when it was involved in a collision with a car negligently driven by Karen. The taxicab was valued at $15,000 at the time of the collision and at $10,000 immediately after the collision. Prior to the collision Jared averaged $200 per day in fares. The taxicab was in repair for ten working days.

Select the total amount of damages you believe Jared should recover in an action against Karen.

a. $5,000

b. $2,000

c. $15,000

d. $7,000

3. On October 11, by signed written contract, Stark and Pepper agree that Stark (Seller) will convey his real property to Pepper (Buyer), Pepper to pay a purchase price of $500,000. As a down payment, Pepper is to pay 20 percent of that amount ($100,000) immediately on October 11, and the remaining, $400,000, at a closing to occur on December 15. The contract includes this provision:

Down Payment as Liquidated Damage. The parties agree that if Buyer should fail at closing to purchase the property, then Seller may keep, as liquidated damage, the 20 percent ($100,000) down payment Buyer is to make on the formation of this contract, in which case Seller will be entitled to nothing more.

On November 20, Pepper advises Stark that she will not purchase the realty, thus committing an anticipatory repudiation and material breach. She has found another property offered by a seller named Banner, and she intends to buy it. Pepper asks Stark to return her $100,000 deposit. Stark refuses, claiming that under their contract he is entitled to keep it as liquidated damages. Pepper sues Stark for unjust enrichment, claiming restitution in the amount of $100,000.

The court should rule for Stark only if it finds that

I. under these circumstances, a $100,000 award is not punitive.

II. on forming this contract, under these circumstances, reasonable persons would find themselves unable to foresee the actual damage to be sustained by Stark on Pepper's breach.

III. Pepper did not truly intend to purchase Banner's property.

IV. Banner's property is substantially like Stark's.

Which is correct?

a. I, II, III, and IV

b. I, II, and III only

c. I only.

d. I and II only

4. Brian gets in a car accident because of Greg's negligence. As a result of the accident, Brian's car catches fire and burns completely. Brian was not injured. The car was worth $15,000 at the time of the accident. Inside the car, Brian had a $400 iPhone that he owned, $100 Air pods that he owned and his friend Tom's $1,500 MacBook Air.

How much can Brian recover from Greg for the accident?

a. $15,000

b. $15,500

c. $17,000

d. $15,400

5. Sally contracts with SpudEx, a delivery company, to deliver 1000 pounds of potatoes to Betty to use at her hamburger stand. Sally's contract with Betty indicates that if Sally does not deliver the potatoes by Friday, June 1, that Sally will pay Betty lost profits for the sale of French fries. SpudEx does not deliver the potatoes until June 7. Because of the delay, Betty loses six days of profits on French fries for a total amount of $500. Sally pays Betty the $500. Sally then sues SpudEx for breach of contract seeking the $500.

Under what circumstance would it make it more likely that Sally would be successful recovering the $500 from SpudEx?

a. Sally told SpudEx about the agreement with Sally.

b. There was no legitimate excuse for SpudEx's failure to timely deliver the potatoes.

c. Betty lost $1,000 in profit.

d. The $500 is determined to a be a reasonable estimate for loss profits.

6. Sally contracts with SpudEx, a delivery company, to deliver 1000 pounds of potatoes to Betty to use at her hamburger stand. Sally's contract with Betty indicates that if Sally does not deliver the potatoes by Friday, June 1, that Sally will pay Betty lost profits for the sale of French fries. SpudEx does not deliver the potatoes until June 7. Because of the delay, Betty loses six days of profits on French fries for a total amount of $500.

Here, Sally refused to pay Betty the $500, and Betty sued Sally to enforce the clause.

What factors would be relevant to the court's analysis:

I. The $500 is determined to a be a reasonable estimate for loss profits

II. There was no legitimate excuse for SpudEx's failure to timely deliver the potatoes

III. Sally told SpudEx about the agreement with Sally

IV. Betty lost $1000 in profit.

a. I, II, and III.

b. I, III, and IV.

c. All answers are relevant.

d. I and IV.

7. Sam sold seashells to Brenda. The shells were advertised as being collected from Brenda's favorite beach - the beach where she got engaged. She purchased the shells to use as decorations at her wedding. However, the day before the wedding, Sam got busted by the FBI for selling counterfeit seashells. Brenda found out about it and was devastated.

Assuming counterfeit shells have a lower market value than actual shells, which of the following damages would Brenda be likely to recover from Sam if she sued him for breach of contract only?

a. The difference in cost between real shells and counterfeit shells.

b. No damages at all.

c. Damages for her emotional distress.

d. The full cost of buying new real seashells.

8. Sam sold seashells to Brenda. The shells were advertised as being collected from Brenda's favorite beach - the beach where she got engaged. She purchased the shells to use as decorations at her wedding. However, the day before the wedding, Sam got busted by the FBI for selling counterfeit seashells. Brenda found out about it and was devastated.

If Brenda sued Sam in tort, such as for fraud, how would the answer be different from a breach of contract lawsuit?

a. No difference. She could only get the difference in cost between real shells and counterfeit shells.

b. She could only recover emotional distress damages.

c. She has no damages.

d. With a tort theory, she could possibly recover for her emotional distress damages as well as the difference in cost between real shells and counterfeit shells.