1)I hire you to reconstruct my restaurant for $100,000. The work is to be completed by January 1, 2022. In October 2021, you walk off the job and leave it unfinished. I have to hire another contractor to complete the work. He finishes the job on February 1, 2022. I have lost $10,000 in profit because my restaurant was not open. I sue you for breach of contract.

The $10,000 is consequential damages

The $10,000 is compensatory damages

The $10,000 cannot be recovered as damages

None of the above

2) In 2020, John Smith lends me $100,000. I give him a security interest on my heavy equipment. He does not perfect his security interest. Last week Tom Jones lent me $100,000 on the same equipment and perfected his security interest. I default on both loans and the equipment is sold at auction.

Tom Jones gets paid first

John Smith gets paid first

They each get half of the proceeds as they both have a security interest on the same equipment

None of the above

3)A salesman says the Dell Lattitude E6430 can run your software program needed for your business. You tell him that you need his advice on the matter because you don't know either way. You buy the computer he recommends, but the computer is too slow for the software to run

a.

It is an implied Warranty of Merchantability

b.

It is a breach of the Implied Warranty of Fitness for a Particular Purpose

c.

It is not a breach of warranty

d.

The warranty must have been express to be enforced

4) A salesman says the Dell Lattitude E6430 can run your software program needed for your business. You tell him that you need his advice on the matter because you don't know either way. You buy the computer he recommends, but the computer is too slow for the software to run

	a.	It is an implied Warranty of Merchantability
	b.	It is a breach of the Implied Warranty of Fitness for a Particular Purpose
	c.	It is not a breach of warranty
	d.	The warranty must have been express to be enforced

5) We have a contract where you will mow my lawn for $50. Before you start, I run outside and say, "I am breaching my contract with you, you cannot mow my lawn." My neighbor hears the commotion and says, "you can mow my identical lawn for $50." You say, "no, I will take a half-hour break and sue Professor Summer for the $50 he owes me."

	a.	Since there is a breach of contract, you will recover
	b.	You can't recover as it is only $50
	c.	None of the above
	d.	You have a duty to mitigate your damages and should accept the neighbor's offer