Question 26

True or False?

Punitive damages are generally not available for breach of contract, unless there is also a tort such as fraud involved.

True

False

question 27:

When no actual damage or financial loss results from a breach of contract and only technical injury is involved, the court may award ______________________.

consequential damages

liquidated damages

punitive damages

nominal damages

Question 28

What does the term "mitigation" refer to in connection with damages?

Punitive damages.

The calculation of lost profits.

The duty of a nonbreaching party to reduce damages he/she suffers.

The duty to give the breaching party one more chance to perform the contract.

Question 29

A _________________ provision in a contract specifies that a certain dollar amount is to be paid in the event of a future breach of contract.

nominal damages

liquidated damages

conditional damages

punitive damages

Question 30

_________________________ requires returning goods, property, or funds previously conveyed.

Reformation

Nominal damages

Restitution

Punitive damages

Question 31

__________________________ is an equitable remedy that calls for the performance of the act promised in a contract.

Reformation

Restitution

Specific performance

Nominal damages

Question 32

Alan and Beth sign a contract, under which Alan agrees to sell Beth rare coins, a painting by a famous artist, and land. If Beth paid the full contract price, and Alan refused to deliver (give) the coins, painting, and land to Beth, the court will likely award specific performance for ______________________________.

the land only

the coins, painting, and land

none of the items in the contract

the painting only

Question 33

_________________________ is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

Reformation

Novation

Mistake

Restitution

Question 34

Articles 2 and 2A of the UCC cover which types of contracts?

Sales of services and leases of services

Sales of goods and the providing of services

Sales of goods and leases of goods

Sales of land only

Question 35

In a mixed contract involving both the sale of goods and provision of services, the court will apply the contract rules of the UCC or of the common law depending on whether

the parties are both merchants.

the contract is in writing.

there is a novation.

the predominant purpose of the contract is goods or services.

Question 36

_______________ property has physical existence, as it can be touched or seen.

Offered

Invisible

Intangible

Tangible

Question 37

Under the UCC, a person is a _______________________ when she or he, acting in a mercantile capacity, possesses or uses an expertise specifically related to the goods being sold.

lessee

buyer

merchant

consumer

Question 38

Under the UCC, a consumer lease is defined as:

any lease of 3 years or less.

a requirements contract.

a lease involving goods leased to a consumer primarily for personal, family, or household purposes, where the total lease payments are less than $25,000.

any apartment lease agreement.

Question 39

Under the UCC, a firm offer must be:

made over the phone by a merchant.

made by a merchant in writing and signed by the offeror.

oral and made by a merchant.

oral and made by a nonmerchant.

Question 40

In a(n) _______________________ contract, the buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer requires.

output

consumer

requirements

unconscionable

Question 41

In a(n) ___________________ contract, the seller agrees to sell and the buyer agrees to buy all or up to a stated amount of what the seller produces.

lease

unconscionable

requirements

output

Question 42

True or False?

Under the UCC, the prompt shipment of nonconforming goods constitutes both an acceptance, which creates a contract, and a breach of that contract.

False

True

Question 43

True or False?

Under the UCC, if both parties to an oral sale of goods contracts are merchants, the Statute of Frauds requirement can be satisfied if one of the parties sends a written confirmation to the other party within a reasonable time, and the other party does not object in writing within 10 days of receiving the confirmation.

False

True

Question 44

Under the UCC, if a contract is so unfair and one sided that it would be unreasonable to enforce it, the contract may be challenged in court as

nonconforming goods

an output contract

a requirements contract

unconscionable

Question 45

A business with one owner is a

sole proprietorship

limited liability partnership

general partnership

limited partnership

Question 46

A limited liability company (LLC) must file what document with the secretary of state?

Articles of Organization

Profit and loss allocations of the members

Articles of Incorporation

Articles of Partnership

Question 47

At creation, this form of business requires at least one general partner and one limited partner.

Corporation

Limited Liability Partnership

Sole Proprietorship

Limited Partnership

Question 48

The ________________ of a corporation are set out with a complete description as to the day-to-day operation of the corporation.

by-laws

general partners

articles of organization

capital contribution

Question 49

Articles of Partnership are filed with the Secretary of State to form which of the following?

Limited Partnership

Corporation

Sole Proprietorship

Limited Liability Partnership

Question 50

With respect to corporations, which of the following statements is FALSE?

The general rule is that only the corporation itself can be held liable for corporate obligations.

Corporations are required to file Articles of Incorporation with the Secretary of State.

The owners of the corporation are called shareholders.

A corporation is either Member Managed or Manager Managed.