Practice Multiple Choice Flashcards
(25 cards)
Squash is planted in April and harvested in late August. A farmer’s entire crop is negligently destroyed in early August, just before harvest. What is the proper measure of the farmer’s recovery?
A. The cost of seeding and planting.
B. The change in the fair market value of the land.
C. The market value of the squash.
D. The market value of the squash, minus the cost of harvesting and marketing.
C - Destruction of crop occurred just before harvest
Darlene and Perry enter into a contract that requires Darlene to paint Perry’s house, in exchange for payment of $2500. Darlene paints the house but is not very careful about it: she paints the door the wrong color, and neglects to paint some areas at all. Perry is very upset. He sues Darlene for breach of contract and negligence. Which of the following is the most likely result?
A. Perry will be able to recover both contract and tort damages because Darlene breached the contract and committed the tort of negligence.
B. Perry will not be able to recover for breach of contract because the tort supersedes the contractual obligation.
C. Perry will be able to recover contract damages but not tort damages because the negligent conduct that is the basis of the tort was also a breach of the parties’ contract.
D. Perry will be able to recover tort damages but not contract damages because the tort is independent of the contract.
C - Unless tort is independent, plaintiff is limited to contract damages
Doris parked her car without permission five days a week on a vacant lot owned by Paulene. Paulene was not using the lot for anything else. Doris saves $5 per day that she otherwise would have spent at a pay parking lot. Paulene sues Doris for trespassing. Which remedy is best for Paulene?
A. Damages for loss of use
B. Damages for lost profits
C. Constructive trust
D. Restitution
D - Measured by amount of defendant’s gain. Here, gain is more than loss so restitution is best.
The term “restitution” refers to:
A. A cause of action
B. A remedy
C. Both A and B
D. None of the above
C - Restitution is either remedy based on another cause of action OR an independent (p. 301-302)
Peter Fifer owns a one-acre plot of land in the desert. The terrain is rough, and with no easily accessible water source, the market value of the land is minimal—approximately $5,000. Mistaking Fifer’s property for a nearby dumping site, a chemical manufacturing company dumps several tons of toxic waste onto it. The waste renders the property uninhabitable and totally worthless. The waste can be cleaned up, but only at great effort and expense. The cost to clean up the waste is approximately $1,000,000. In Fifer’s lawsuit against the chemical company for trespass and nuisance, the measure of damages will most likely be:
A. Special damages
B. Diminution in value
C. Cost to repair
D. All of the above
B - Though he has reason for repair, cost to repair is disproportionate
Kathy Kramer’s automobile is stolen from her garage. The stolen vehicle is 15 years old and has a market value of around $2,500. Two months later, the police find the car abandoned and totally wrecked. It was stolen by Jonathan Crick, who used it to collect $10,000 in fares as a taxi. In a lawsuit by Kathy against Jonathan, which of the following represents the correct amount of damages?
A. $12,500
B. $10,000
C. $2,500
D. None of the above
C - measure of damages for conversion is fair market value at the time of conversion.
Perry leaves a paper bag containing $500 on top of his car. Darlene sees it, takes it, and uses the money to buy a junky old car for $500. The car turns out to be a rare classic worth over $50,000. What remedy should Perry seek in a lawsuit against Darlene for conversion?
A. Damages
B. Rescission
C. Restitution
D. Specific Performance
B - Preferable because defendant’s ultimate gain is far more than plaintiff’s loss
Teri is injured in a car accident caused by Dave. Teri’s hospital bill is $50,000, but insurance pays $45,000 of it. Teri pays $5,000 out of pocket. In her lawsuit against Dave, what are the special damages for medical expenses?
A. $45,000
B. $5,000
C. $50,000
D. $55,000
C - Under Collateral Source Rule–>Tortfeasor is responsible for ALL loss, even if a third party pays some
Why is it necessary to reduce damages to present cash value?
A. So damages awarded for harm that has already occurred are not properly inflated
B. To create an incentive for juries to award seemingly speculative future harm
C. To prevent a windfall to the plaintiff
D. To ensure that plaintiffs are adequately compensated even after paying attorney fees
C - $ in hand is worth more so plaintiff doesn’t get win fall from early $
Donald’s car breaks down and he can’t afford the $200 repair. Patrick buys $50 in parts and spends $40 worth of labor fixing it. Donald saw him doing it and waved. After payday, Patrick asks for $90. Donald refuses. What is Patrick entitled to?
A. $50, as reimbursement for the parts Patrick bought
B. $40, quantum meruit
C. $90, based on a contract implied by law
D. Nothing, because Patrick was an officious intermeddler
C - (contract implied by law=quantum meriut) Law imposes contract to prevent unjust enrichment. He knowingly accepted.
A constructive trust is:
A. An equitable remedy
B. A legal remedy
C. Both A and B
D. None of the above
A - An order one party holds property in trust for another
A large corporation makes blenders with safety locks. A disgruntled employee removes the safety locks from some units. A supervisor sees this but does nothing. A consumer buys one of these defective blenders and loses three fingers. She sues for punitive damages. What’s the best argument against awarding them?
A. The conduct at issue was neither malicious nor oppressive
B. The consumer assumed the risk of injury
C. Imposing punitive damages in this situation would be arbitrary
D. The misconduct was not committed by anyone with authority to manage the corporation
D - Plaintiff must prove managerial authority
An insurance company avoids paying valid claims. An insured person sues and gets $1,000,000 for emotional distress. The jury also finds fraud, malice, and oppression. What is the largest amount of punitive damages the jury can permissibly award?
A. $9,000,000
B. $5,000,000
C. $1,000,000
D. The amount depends on the degree of reprehensibility of the defendant’s conduct
D - 10x is usually the guideline BUT if the act is extremely reprehensible, it could amount to more
Dan embezzles $10,000 from Paul and buys tech stock. It increases to $50,000, and Dan sells it to buy a sports car. Which remedy gives Paul the best chance at recovering?
A. Special damages
B. General damages
C. Restitution
D. Constructive trust
D - Can be sued to give specific title when wrongfully obtained. Can use because sports car can be directly tied to the cash. This would give car to plaintiff.
Datatex is a company that accumulates personal information regarding people who shop online and sells the data to online merchants to use for marketing purposes. Datatex discovers its chief competitor, SalesSolutions, has stolen Datatex’s electronic files and is now selling this valuable consumer data which rightfully belongs to Datatex. Datatex wants to file a legal action seeking a court order prohibiting SalesSolutions from selling any more stolen information but has reason to believe that if SalesSolutions finds out about the lawsuit, it will destroy all incriminating evidence in its possession. Which of the following provides the best chance for Datatex to succeed in its lawsuit against SalesSolutions?
A. File a lawsuit against SalesSolutions that requests a preliminary injunction, and have the complaint personally served on an authorized representative for SalesSolutions.
B. File a lawsuit against SalesSolutions that requests compensatory damages only, and have the complaint personally served on an authorized representative for SalesSolutions.
C. File a lawsuit against SalesSolutions that requests a preliminary injunction and a temporary restraining order, and do not give any notice to SalesSolutions of the lawsuit until after the temporary restraining order is issued by the judge.
D. File a lawsuit against SalesSolutions that requests a preliminary injunction and a temporary restraining order, and give notice to SalesSolutions by telephone at least 24 hours prior to the hearing on the request for the temporary restraining order.
C
Which of the following is necessary for a preliminary injunction?
A. Adequate damages
B. Irreparable harm
C. A trial on the merits
D. Malicious and oppressive conduct
B - ALWAYS required unless statute says otherwise
A man knocks on the door of a house and offers to rake the leaves in the front yard. The homeowner tells the man he has no objection to the leaves being cleaned up. When the man asks how much he might be paid, the homeowner says, “just go ahead and rake, and we’ll sort out the payment later.” After the man finishes raking the leaves, the homeowner refuses to pay. Can the man recover any compensation from the homeowner?
A. Yes, because there is a contract implied by law.
B. Yes, because there is a contract implied in fact.
C. No, because the parties did not agree on a price.
D. No, because the man is a volunteer.
B- Contract implied in fact. Arises from conduct to suggest mutual agreement. Failure to specify is not fatal.
Contract in fact= conduct
Contract in law= imposed by law to prevent unjust enrichment.
Which of the following statements about restitution is most accurate?
A. Restitution is an equitable defense.
B. Restitution is a cause of action.
C. Restitution is not available when damages are adequate.
D. Restitution cannot be used as a theory of recovery.
B - it can operate as its own theory of recovery
Michael and Juan are business partners who started a company which is now worth $25 million. Michael believes that, pursuant to the initial agreement between he and Juan, each of them owns 50 percent of the company. Juan surprises Michael one day by stating that, in fact, the correct interpretation of the agreement is that he owns 90 percent of the business, and Michael owns only 10 percent. Michael wants to file a legal action to obtain a decree stating that he is entitled to a 50 percent ownership interest in the business. Which of the following remedies should Michael’s lawsuit seek to best accomplish his stated goal:
A. Injunction
B. Damages
C. Constructive Trust
D. Declaratory judgment
D - Decree stating legal rights
Jamie wants to build a gazebo in her backyard but is concerned it might violate a city ordinance prohibiting backyard structures taller than 20 feet. She files a lawsuit against the city for a declaratory judgment, seeking a declaration that “building a gazebo in plaintiff’s backyard would not violate the relevant ordinance.” If the court denies Jamie relief, what would be the most likely reason?
A. The matter is not a proper subject for a declaratory judgment.
B. There is no actual and existing dispute.
C. Declaratory judgments cannot be used to determine whether a statute applies to a particular situation.
D. Damages would be an adequate remedy.
B
Which of the following best describes a situation where the affirmative defense of laches would be successful?
A. The plaintiff did not prove the delay in filing the lawsuit was reasonable, and that the defendant was not prejudiced by the delay.
B. The defendant proved that the plaintiff’s delay in filing the lawsuit was unreasonable, and that the delay in filing was prejudicial to the defendant.
C. The defendant proved that the lawsuit was filed after the expiration of the statute of limitations for an analogous legal claim.
D. The plaintiff did not prove when he first had knowledge of the facts giving rise to the claim.
B
When parties to a contract agree in advance about the precise amount of damages that should be awarded if the contract is breached, this practice is:
A. Always permissible
B. Never permissible
C. Permissible if damages would be difficult to measure at the time of contract and the agreed upon sum is a reasonable estimate
D. Permissible only when both parties to the contract are corporate entities
C - Advance agreement is Liquidated Damages Provision
Ralphie Torres lives in San Jose, California, and has a job interview in Phoenix, Arizona at 3:00 p.m. on Monday. He takes a 6:00 a.m. flight that morning from San Jose to Phoenix and checks one bag with the airline which contains, among other things, the laptop computer that he plans on using to put on a presentation for the potential employer during his interview. Unfortunately, the airline loses Ralphie’s luggage, so he is unable to put on a presentation during the interview and, as a result, is not offered the job. Ralphie sues the airline for breach of contract and seeks damages for (1) the value of the laptop computer; and (2) the salary that he would have received had he obtained the employment for which he was interviewing. Whether or not they are ultimately awarded, the damages for the lost salary can be best categorized as:
A. General damages
B. Special damages
C. Tort damages
D. Speculative damages
B
A refrigerator manufacturer contracted with an ice cream company to provide refrigeration units for ice cream delivery trucks. The contract guaranteed that the units would keep ice cream at the optimal temperature. The manufacturer installed the wrong refrigeration units on the trucks, however, resulting in mechanical malfunctions. The units malfunctioned on trucks that were in transit loaded with ice cream, spoiling 200 cartons intended for customers. The malfunctioning refrigeration units can be replaced at a cost of $30,000. The cost of the spoiled ice cream was $1,000. The customer that did not receive the ice cream canceled its delivery contract with the ice cream company, resulting in the company losing profits of $50,000. In a breach of contract lawsuit against the refrigerator manufacturer, which is the most likely measure of the ice cream company’s damages?
A. Nothing, because the breach was not in bad faith.
B. The $30,000 cost of replacing the refrigeration units.
C. The $50,000 lost profits on the delivery contract and the $30,000 cost of replacing the refrigeration units.
D. The $30,000 cost of replacing the refrigeration units and the $1,000 cost of the spoiled ice cream.
D - Both are natural and probable losses
