Law 331 Chapter 19 Quiz
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Jan 9, 2024
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Law 331: Chapter 19 Quiz
Chapter 19 Quiz
Question 1
The rule of mitigation of damages requires that a party injured by a breach of contract
must:
a)
hire someone else to perform the contract.
b)
take reasonable steps to reduce the damages that would otherwise be sustained
because of the breach.
c)
discharge the contract before filing suit for breach.
d)
take any and all steps possible to reduce the damages that will be sustained
because of the breach.
Question 2
If a seller delivers defective goods, the buyer does not lose the right to object to the
breach of contract if the buyer:
a)
accepts the goods with a reservation of right.
b)
accepts the performance without protest.
c)
accepts the goods.
d)
agrees to a modification of the contract.
Question 3
Damages in excess of actual loss are called:
a)
nominal damages.
b)
compensatory damages.
c)
punitive damages.
d)
restitution.
Question 4
When the contract requires that both parties submit disputes to arbitration, this is an
example of a limitation-of-remedies clause.
a)
True
b)
False
Law 331: Chapter 19 Quiz
Question 5
The party that breaks a contract may be required to pay damages to the other party to
compensate for:
a)
a heart attack induced by the emotional disturbance caused by the breach of
contract.
b)
damages resulting necessarily and directly from the breach of contract.
c)
losses that could have been avoided by hiring someone else to perform the
contract.
d)
emotional disturbance caused by the breach of contract.
Question 6
If there is a breach of contract, the law requires that the other party terminate the
contract and bring a lawsuit.
a)
True
b)
False
Question 7
Damages in excess of actual loss, imposed for the purpose of punishing or making an
example of the defendant, are known as compensatory damages.
a)
False
b)
True
Question 8
The “American rule” states that the losing party in a lawsuit is responsible for all attorney
fees.
a)
True
b)
False
Question 9
The failure to act or perform in the manner called for by a contract is a:
Law 331: Chapter 19 Quiz
a)
breach.
b)
forbearance.
c)
reservation of right.
d)
waiver.
Question 10
An injured party who rescinds a contract after having performed services may recover
the reasonable value of the performance rendered under
restitutionary or quasi-
contractual
damages.
a)
False
b)
True
Question 11
An antimodification clause specifies that a waiver to any breach automatically modifies
the contract.
a)
False
b)
True
Question 12
1.25 / 1.25 pts
When a party expressly declares before the time for performance arrives that the
contract will not be performed, such a declaration is called an anticipatory repudiation.
a)
True
b)
False
Question 13
An innocent party to an anticipatory repudiation of a contract has the right to treat the
repudiation as a present, material breach and may file suit.
a)
False
b)
True
Question 14
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Law 331: Chapter 19 Quiz
A landlord who continuously accepts late rental payments without collecting the late fee
provided in the lease:
a)
will collect the late fee at a later date.
b)
allows the tenant to repudiate the lease.
c)
waives the late fee.
d)
is ignorant of the late fee.
Question 15
When a party waives compliance with one provision of a contract, the other party may
thereafter ignore other provisions of that contract.
a)
False
b)
True
Question 16
Which is NOT a correct statement concerning a liquidated damages clause?
a)
If the clause is enforced, the injured party can collect no more than the amount
specified.
b)
If the clause is enforced, the injured party has a choice between compensatory
damages or liquidated damages.
c)
The amount of liquidated damages are established by the parties to the contract.
d)
It must be possible to determine actual damages.
Question 17
When one party commits a non-material breach of contract, the other party may rescind
the contract.
a)
True
b)
False
Question 18
Only direct losses from a breach of contract may be recovered by an injured party.
a)
False
b)
True
Question 19
Law 331: Chapter 19 Quiz
__________ occurs when a party expressly declares that performance will not be made
when required.
a)
A waiver of breach
b)
Restitution
c)
An injunction
d)
Anticipatory repudiation
Question 20
If one party to a contract breaks the contract, the other party generally is under a duty to
stop any further performance to avoid sustaining greater damages.
a)
True
b)
False