1. Suppose that the striking teachers agree to a 15% pay raise over the course of the next three years, or 5% per year. Unfortunately, the lawyer who draws up the contract fails to state that the 15% increase will be divided over three years. Thus the contract states the teachers will receive an immediate pay increase of 15%. The city of Chicago asks the court to rewrite the contract so that it states the true terms of the agreement between the city and the teachers' union. Under what principle will the court likely allow the city to rewrite the contract?

a intentional interference

b injunction

c reformation

d estoppel

2. Suppose that, as part of a union contract, the city of Chicago promises to pay all second-year teachers a salary of $50,000. Jackson, who is now a second-year teacher, gets his paycheck and realizes that he is being paid only $47,000 a year. He gets fed up with working for the city of Chicago and gets a job teaching in a suburb at a salary of $65,000 a year. He decides to sue the city on principle, and the court finds in his favor, ordering Chicago to pay him $1 in damages. These damages are called _______ damages.

a liquidated

b compensatory

c consequential

d. nominal

Question Number 3) Suppose that Chicago offers its teachers a 5% salary increase next year. The union ratifies the agreement. Selena, who made $20,000 this year, therefore expects to make $21,000 next year. But when she gets her first check of the new year, she sees that her salary has not increased at all. What is the amount of compensatory damages that Selena can sue for?

a $1 million

b $21,000

c $1,000

d $41,000

Question Number 4) Suppose that the striking teachers in this video sign a five-year contract that promises them a $1,000 bonus per year. After three years, the city of Chicago encounters budget problems and cannot afford to pay the bonus. Rather than go on strike to demand their bonus, the teachers make an agreement with the Board of Education that they will sit down with an impartial third party to resolve the dispute. If the teachers agree that they will not appeal the decision to the courts, they have agreed to ______ arbitration.

a federal

b union

c non-binding

d binding

Question Number 5) Suppose that the striking teachers featured in this video agree to go back to work when the city of Chicago offers them a 20% pay increase over 5 years, or 4% per year. For the first three years, the city raises the teachers' salaries as agreed, but in the fourth year it increases teachers' salaries by only 1%. Teachers are shocked when they get their first paycheck of the year, because they were expecting the agreed-upon 4% increase. Which infraction has the city committed?

a anticipatory breach

b complete performance

c material breach

d strict performance