Question 13

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In which scenario would the non-breaching party lose the opportunity to avoid or limit losses?

• A cabinetmaker stops building cabinets for an order when he learns of his customer's insolvency.
• An art store stops selling paints once it discovers that its recent paint order contains defective materials.
• An office supply store continues to ship printer paper to a business that it knows has closed.
• A car dealer finds a new buyer for an automobile that was previously under contract.

Question 14

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Which of the following conditions always renders a contract voidable?

• If a party to the contract can no longer afford the promised consideration
• If a party to the contract fraudulently misrepresents material facts
• If a party to the contract has changed his or her mind
• If a party to the contract is in good mental health but misunderstands the terms of the contract

Question 15

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A disgruntled employee writes a letter to the local newspaper that contains harmful lies about his employer. The letter is published in Monday's edition of the newspaper.

Which type of intentional tort does this represent?

• Intentional infliction of emotional distress
• Misrepresentation
• This action does not rise to the level of an intentional tort.
• Defamation

Question 16

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A firefighter is injured by smoke inhalation while fighting an accidental fire at a local resident's house.

Is the homeowner liable for negligence if the firefighter sues?

• Yes, because the homeowner breached a duty of reasonable care to the firefighter.
• No, because the homeowner had no duty of care to the firefighter.
• Yes, but only if causation can be established.
• No, because the firefighter was acting unreasonably by entering a burning home.

Question 17

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Select the true statement about the Convention on Contracts for the International Sale of Goods (CISG).

• Parties to the Convention must re-approve the treaty every five years.
• It governs the international sale of services in addition to goods.
• Its purpose is to unify contract law among countries to facilitate international trade.
• It governs international sales contracts for all countries in the world.

Question 18

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Heidi purchases an original work by one of her favorite sculptors from an art dealer for $8,000. When the sculpture is delivered, Heidi has it inspected by an art appraiser, who informs her that the sculpture is a fake. When Heidi calls the art dealer to tell him the news, he is honestly shocked and appalled.

What remedy does Heidi have in this scenario?

• Heidi is entitled to recover the purchase price of the sculpture, as well as the money she spent to have the sculpture appraised.
• Heidi may sue the art dealer for specific performance and require the dealer to secure the original sculpture in any way possible.
• Heidi has no recourse in this scenario, because she accepted delivery of a non-conforming good.
• Heidi is only entitled to recover the money that she paid for the sculpture.