quiz questions

Question 1

Builder negligently misread the address of his work order and installed a new underground sprinkler system on the wrong commercial property. He pulled out a flower bed, which will cost $1,500 to replace. The value of the new sprinkler system is $2,500. When the property owner files suit, seeking damages, which rule best supports Builder’s argument that the court should dismiss the case?
a. the credit for benefit rule
b. the collateral source rule
c. the pure economic loss rule
d. the rule of avoidable consequences

Answer 1

a. the credit for benefit rule

Question 2

Road Crew negligently cut through a water main, which flooded the streets surrounding Rita’s neighborhood. Rita was stuck in her house for a full week before she was rescued and lost $700 in wages. What is the best basis for Road Crew’s argument that it is not liable to pay damages for the lost wages?

1. The collateral source rule.
2. The pure economic loss rule.
3. The rule of avoidable consequences.
4. The rule that plaintiff must prove damages with sufficient certainty to recover.

Answer 2

2. the pure economic loss rule

Question 3

A teenager walked across a corner of a landowner’s yard repeatedly on his way home from school. One day the landowner saw the teenager and asked him not to enter the property again. The teenager said he did not realize that the landowner owned that corner of land and agreed not to enter the property again. Not believing that the teenager will stop, the landowner has now threatened a lawsuit alleging trespass against the teenager. Which of the following is true of the damages the landowner may possibly obtain?

1. The landowner will not receive any damages because the teenager did not know that he was trespassing.
2. The landowner will not receive any damages unless she can prove that the teenager’s entry onto the property caused actual damage to it.
3. The landowner will receive both nominal damages and punitive damages.
4. The landowner will not receive punitive damages because the teenager’s conduct does not meet the standard.

Answer 3

4. The landowner will not receive punitive damages because the teenager’s conduct does not meet the standard.

Question 4

Plaintiff recovered $5,000 in compensatory damages and $20,000 in punitive damages from Defendant for willfully and repeatedly riding his bike over her fragile wetlands property. State and federal agencies impose fines from $5,000 up to $50,000 for similar conduct. Assume the compensatory damages award is supported by the evidence, will the appeals court uphold the punitive damages award?

1. Likely yes.
2. Likely no, because the U.S. Supreme Court’s “reprehensibility” factor is not met.
3. Likely no, because the U.S. Supreme Court’s “ratio” factor is not met.
4. Likely no, because the U.S. Supreme Court’s “comparable sanctions” factor is not met.

Answer 4

1. Likely yes.

Question 5

Which of the following types of damages must a jury reduce to present value?

1. Pain and suffering.
2. Medical expenses incurred up to the trial date.
3. Wages lost because the tort caused a temporary injury that is cured by the trial date.
4. Wages lost because the tort caused a permanent disability.

Answer 5

4. Wages lost because the tort caused a permanent disability.

Question 6

Kate camped on John’s property, built a fire and left hastily in the morning, without extinguishing her campfire. John’s ski cabin burned down, with all his ski clothes in it. The jury has found Kate to have been negligent and will award damages for the cabin and the destroyed clothing. John has introduced evidence that the replacement value new of his brand name ski clothes is $10,000 and that they were approximately two years old. Kate has introduced evidence that the cost a used clothing store would have to pay to acquire clothes of the same type and condition as John’s is $400, and that the cost John would have to pay to replace ski clothes like his own (brand name but two years old) is $1,000.

What is the likely amount of damages that a jury will award?

1. $ 400 (the cost a used clothing store would have to pay to acquire similar ski clothes in the same condition as they were when they were destroyed).
2. $1,000 (the cost John would have to pay to replace similar ski clothes in the same condition as they were when they were destroyed).
3. $10,000 (the cost to replace similar ski clothes new).
4. Some amount between $1,000 and $10,000, which the jury determines to represent the actual value to John of the ski clothes at the time they were destroyed.

Answer 6

4. Some amount between $1,000 and $10,000, which the jury determines to represent the actual value to John of the ski clothes at the time they were destroyed.

Question 7

Defendant negligently destroyed a car that belonged to Plaintiff. The damaged car has no salvage value. Plaintiff purchased the car for $13,000 eight years ago. At the time that it was destroyed, the car’s market value had depreciated to $5,000. A new car which is similar will cost $25,000 today. What is the damages recovery that Plaintiff is most likely to receive?

1. The original cost of the damaged car ($13,000).
2. The depreciated value of the old car at the time of its destruction ($5,000).
3. The cost of a new car ($25,000) less the depreciated value of the old machine at the time of its destruction ($5,000), for a recovery of $20,000.
4. The cost of a new car ($25,000).

Answer 7

2. The depreciated value of the old car at the time of its destruction ($5,000).

Question 8

A man drives his own car for a rideshare company and is paid an average of $200 per day. A motorist hit the car while it was parked, causing damages that took two weeks to repair. In addition to the cost of repair, what damages is the man most likely to obtain from the motorist for the time he did not have his car because it was being repaired?

1. The cost of renting a similar car.
2. The cost of renting a similar car and $200 per day in lost pay.
3. Nothing because it is pure economic loss.
4. Two weeks of interest calculated by the average treasury bond rate multiplied by the value of his car.

Answer 8

1. The cost of renting a similar car.

Question 9

A number of federal circuits, including the Ninth Circuit, use both the traditional and sliding scale tests to determine whether to issue a short-term injunction. Which party would most benefit from a court’s use of the sliding scale test at a temporary restraining order hearing?

1. A party with a slam-dunk case on the merits.
2. A party whose deed is ambiguous as to the boundary line of her property, but whose home located on the disputed part of the property will be destroyed by a construction crew before the end of the next week absent a TRO.
3. A party that will have to spend a great deal of money to replace a shipment of automobile parts absent a TRO.
4. A party who can show that the defendant’s conduct may cause great personal injury, but who cannot show that the great injury is likely to occur, absent the TRO.

Answer 9

2. A party whose deed is ambiguous as to the boundary line of her property, but whose home located on the disputed part of the property will be destroyed by a construction crew before the end of the next week absent a TRO.

Question 10

Veiga and Rorf make money by selling appliances at highly inflated prices to senior citizens. Veiga makes the initial calls, and once the senior citizens “takes the bait,” Rorf seals the deal and collects the payment. Veiga has now discovered that Rorf has been delivering only 30% of the proceeds, and pocketing 70% for himself in violation of the 50/50 split set out in their partnership agreement. Veiga has filed suit against Rorf, seeking a preliminary injunction to prohibit Rorf from breaching the terms of the partnership agreement. If the court denies the preliminary injunction, what is the most likely reason?

1. Veiga has not come into court with clean hands.
2. Veiga is unable to show a substantial likelihood of success on the merits.
3. Veiga is estopped from claiming a violation of the partnership agreement because he chose to go into business with Rorf.
4. Because Veiga works closely with Rorf, he should have known about the violation and is barred from obtaining a preliminary injunction because he should have filed suit sooner.

Answer 10

1. Veiga has not come into court with clean hands.

Question 11

Zac gets a preliminary injunction, which Walter must obey. Walter introduces credible evidence that he will suffer $20,000 per month in damages because of the injunction. The court sets the permanent injunction hearing for six months later, and sets the bond at $100,000. At the permanent injunction hearing, Walter prevails and the court dismisses Zac’s claim. When Walter looks back through his records, he realizes that he only incurred $60,000 in damages due to the injunction. How much can Walter recover from the bond?

1. Nothing, because the amount of bond exceeds his losses.
2. $60,000, so long as he can produce evidence proving this amount of loss at a bond hearing.
3. $100,000, so long as he can prove that he suffered actual losses due to the injunction.
4. $100,000, without a hearing because the bond amount determines the amount of recovery.

Answer 11

2. $60,000, so long as he can produce evidence proving this amount of loss at a bond hearing.

Question 12

In which situation is a federal court most likely to find a TRO appealable?

1. It has lasted for more than a month without the restrained party’s consent.
2. The plaintiff cannot show a substantial likelihood of succeeding on the merits of the case.
3. The TRO imposes great hardship on the defendant when the hardship the plaintiff would suffer absent the TRO is very little.
4. The public interest weighs in favor of lifting the TRO.

Answer 12

1. It has lasted for more than a month without the restrained party’s consent.

Question 13

Which of the following is true of a stay pending appeal?

1. A party may fail to obtain a preliminary injunction, because it cannot show sufficient irreparable injury, but nevertheless be able to show sufficient irreparable injury to cause a court to grant an injunction pending appeal.
2. Only a district court may grant a stay pending appeal.
3. Only an appellate court may grant a stay pending appeal.
4. The moving party need not show irreparable injury to obtain a stay pending appeal.

Answer 13

1. A party may fail to obtain a preliminary injunction, because it cannot show sufficient irreparable injury, but nevertheless be able to show sufficient irreparable injury to cause a court to grant an injunction pending appeal.

Question 14

Yada just ran into Cole in the elevator of the building in which they both work. Cole represents a chain of fast food restaurants that Yada’s clients, a group of animal rights advocates, have been boycotting for the last three months because of how the chicken used in its meals are treated. Recently, the consumer group has been posting videos on social media allegedly showing cruel chicken treatment practices by the fast food chain’s suppliers. In the elevator, Cole said, “We are going to file for a preliminary injunction to stop your clients’ lies!” Yada has weekend plans and needs to know how fast she will need to respond to the filing. What kind of notice is required before a preliminary injunction hearing?

1. No notice.
2. Informal notice.
3. Formal statutory notice.
4. Published notice to anyone who might be bound.

Answer 14

3. Formal statutory notice.

Question 15

Harry has successfully obtained a temporary restraining order from a federal district court that prohibits Elsa from beginning construction on the parking lot for her shopping mall until she completes the environmental impact form required by federal statute. Elsa estimates that she will lost $1,000 per day that she is unable to follow through with her construction plans. Which of the following is true of Elsa’s options?

1. She may appeal it immediately so long as she can prove that $1,000 is a great hardship.
2. She may disobey it if it was issued ex parte.
3. She may not move to amend the terms of the TRO because it lasts for such a short time.
4. Unless she consents, the TRO may last for a maximum of 28 days.

Answer 15

1. She may appeal it immediately so long as she can prove that $1,000 is a great hardship.

Question 16

Assume Akhil gets a preliminary injunction, which Brynn must obey. Brynn introduces credible evidence that he will suffer $10,000 per month in damages because of the injunction. The court sets the permanent injunction hearing for six months later, and sets the bond at $30,000. The court of appeals affirms the preliminary injunction. After three months, on Brynn’s motion, the trial court increases the bond amount to $45,000. Brynn wins at trial. He introduces evidence showing that he in fact incurred the $60,000 in damages, just as he had anticipated. In jurisdictions that follow the majority rule, how much can he recover from the bond?

1. None
2. $30,000
3. $45,000
4. $60,000

Answer 16

3. $45,000

Question 17

KiKi owns vacation property and plans to build her dream home on it some day. She knows her neighbor Meena by sight and a hand wave. Two months ago, on one of her infrequent visits, KiKi noticed Meena eyeing an area along of the boundary of the two properties. A man with a clipboard was at her side. The truck parked in the dirt drive said Mark’s Construction. KiKi made a mental note to ask Meena about her plans, but left the property and forgot. One month ago, Kiki drove by the property and noticed a cement truck in Meena’s driveway. A day ago, Kiki arrived at her property and discovered construction ongoing to build a tennis court that will extend 8 feet onto her property. KiKi wants to halt the building immediately. Which of the following is true of her remedies?

1. Because the property is for vacation only, Kiki will not be able to show a sufficiently important interest to obtain a temporary restraining order.
2. If Kiki does not file an application for a temporary restraining order immediately, she may lose the ability to obtain a remedy to remove the tennis court from her property.
3. Kiki has lost the ability to obtain a remedy that will remove the tennis court from her property because she did not seek one immediately after seeking the construction truck.
4. Because of the notice requirement, Kiki can obtain a preliminary injunction but not a temporary restraining order to stop the building.

Answer 17

2. If Kiki does not file an application for a temporary restraining order immediately, she may lose the ability to obtain a remedy to remove the tennis court from her property.

Question 18

Pickleball Pros just filed a complaint in a California court seeking $50,000, which represents the extra cost it had to pay for pickleballs after its usual supplier breached and did not deliver the summer shipment of pickleballs. Assume Pickleball Pros’ gets a verdict for that amount at trial, which of the following is most likely true of any further adjustments to the damages award?

1. The damages award must be reduced to present value.
2. The damages award should be supplemented with an award of prejudgment interest and post-judgment interest.
3. The damages award should be supplemented with an award of post-judgment interest only because the amount of damages was not sufficiently certain, prior to judgment.
4. The damages award should not be supplemented

Answer 18

2. The damages award should be supplemented with an award of prejudgment interest and post-judgment interest.

Question 19

The Waves soccer team operated in the City of Seafront for forty years. Ten years ago Seafront built Waves Stadium, where the soccer team plays all its home games. The Waves are a noticeable source of civic pride among Seafront residents, and draw tourists from around the state. Income from season tickets and concession licensing brings in significant revenue to Seafront, which does not have a large business tax base. Two years ago, Seafront finalized a ten-year lease with the Waves to play in the stadium. Recently, Marcos, the Waves’ owner, announced that the team would be moving to Northshore, a slightly larger city in the same state. Seafront’s city council, anticipating adverse reputational and economic effects from the departure, has filed a breach of contract action against the Waves, seeking short-term injunctions to prevent the Waves from moving and specific performance of the lease agreement. Is a court likely to grant specific performance of the lease to Seafront?

1. Yes, because Seafront can show a breach of contract, which entitles it to choose specific performance as the remedy.
2. Yes, because Seafront has no adequate legal remedy.
3. No, because the burden of supervision on the court will be too great.
4. No, because there is no mutuality of remedy between Seafront and the team.

Answer 19

2. Yes, because Seafront has no adequate legal remedy.

Question 20

A new stadium is built in Fanville as home to the new Fanville Lions major league football team. It has met all zoning requirements. However, attendance is greater than anticipated. As a result, the noise, garbage and congestion are excessive and burdensome to the local residences. The residents sue on a nuisance theory. Assuming they prevail on liability, what is the most likely appropriate remedy?

1. Temporary damages.
2. Permanent damages.
3. Permanent injunction requiring that the football stadium operators take measures to reduce the noise, garbage and congestion.
4. Permanent injunction ordering the football stadium to cease operations.

Answer 20

3. Permanent injunction requiring that the football stadium operators take measures to reduce the noise, garbage and congestion.

Question 21

Andy and Keith are neighbors. Keith’s dog continuously barks throughout the night. The dog’s barking prevents Andy and his family from sleeping at night. Andy has talked with Keith on several occasions about the disturbance. Keith did not take any measures to prevent the dog from barking throughout the night. Andy has sued Keith to enjoin the disturbance. The likely result is that an injunction will be:

1. Denied, because there is an adequate remedy at law.
2. Denied, because of the difficulty of supervision.
3. Granted, in the form of a prohibitory injunction.
4. Granted, in the form of a mandatory injunction.

Answer 21

3. Granted, in the form of a prohibitory injunction.

Question 22

Which of the following most likely has a valid unclean hands defense?

1. Defendant toothpaste company, in an action against it seeking an injunction against deceptive advertising, shows that Plaintiff toothpaste company is running Google ads that falsely claim the paste kills the flu virus.
2. Defendant abortion protester in an action seeking an injunction against his continuing acts of trespass, shows that Plaintiff doctor threw him to the ground when he arrived home to find Defendant and his fellow protesters occupying his lawn.
3. Defendant delivery company, in an action seeking specific performance of a contract requiring it to meet timeliness and geograpical scope requirements, shows that Plaintiff newspaper company deliberately inflates its circulation numbers to appeal to advertisers.
4. Defendant employer shows that Plaintiff employee, seeking reinstatement under a federal statute, was convicted of income tax evasion.

Answer 22

1. Defendant toothpaste company, in an action against it seeking an injunction against deceptive advertising, shows that Plaintiff toothpaste company is running Google ads that falsely claim the paste kills the flu virus.

Question 23

The pig farm next door to Plaintiff’s house smells so bad that the court finds it to be a nuisance. Which of the following is true of the remedies Plaintiff is likely to receive?

1. Plaintiff may receive either an injunction or damages, but not both.
2. Plaintiff may not receive an injunction because she has an adequate legal remedy.
3. Plaintiff may not receive damages because she has an inadequate legal remedy.
4. Plaintiff may receive an injunction that does not require the pig farm to cease operating.

Answer 23

4. Plaintiff may receive an injunction that does not require the pig farm to cease operating.

Question 24

Stuart owns a recording studio. Tyzek lives next door. During the first year of operation, Tyzek called the police ten times to stop late-night recording sessions because the music was disturbing his sleep in violation of a local noise ordinance. Three years ago, Tyzek obtained a court judgment that the loud operation of the studio during nighttime hours was a nuisance. The court granted a permanent injunction prohibiting Stuart from recording between the hours of 9 p.m. and 6 a.m. Stuart, finding that he lost half his business because of the restriction, has invested in state-of-the-art soundproofing, which has almost completely eliminated the noise emanating from the studio. Tyzek, however, has said that he will move to hold Stuart in contempt if he records in violation of the injunction, regardless of the fact that the noise will not disturb him. The city council recently voted to lift the threshold noise level of its local ordinance. Which of the following is true of Stuart’s options?

1. His only option is to bargain with Tyzek until they reach a price Tyzek will accept to lift the injunction.
2. He will likely convince the court to modify or terminate the injunction based on the change in the city ordinance.
3. He will likely convince the court to modify or terminate the injunction based on the change in noise level outside the house due to the soundproofing.
4. He will likely convince the court to modify or terminate the injunction so long as he agrees to post a bond to cover the damages Tyzek will suffer because of any noise from the nighttime operation of the studio.

Answer 24

3. He will likely convince the court to modify or terminate the injunction based on the change in noise level outside the house due to the soundproofing.

Question 25

A man, recognizing that he is about to fall into bankruptcy and not wanting the family homestead to be sold to the benefit of his creditors, sells his property to his brother, who is aware of the man's situation. The two men agree that once the man is free of the bankruptcy, the brother will reconvey the property. Following the conclusion of his bankruptcy, the man asks the brother to reconvey the property. The brother refuses. The man sues for a court order directing the brother to reconvey the property. The brother raises the defense of unclean hands because the man conveyed the property to defraud his creditors. What result is likely? 1. Unclean hands is not a proper defense as the the man has a remedy at law. 2. The defense of unclean hands will not be allowed because the brother is not an innocent party. 3. The court will allow unclean hands because the man's conduct is directly related to the cause of action. 4. The court will allow the use of the unclean hands doctrine because courts do not grant equitable remedies to plaintiffs who have engaged in bad conduct.

Answer 25

3. The court will allow unclean hands because the man's conduct is directly related to the cause of action.

Question 26

Which of the following is true of both a preliminary injunction and a permanent injunction? 1. Plaintiff must post a bond to obtain them. 2. Plaintiff must show either a likelihood of success on the merits or substantial questions on the merits to obtain them. 3. The defense of laches may cause a court not to grant them. 4. They may last no longer than 12 months.

Answer 26

3. The defense of laches may cause a court not to grant them

Question 27

Nita seeks an injunction requiring removal of a ten by ten foot square portion of her neighbor's home addition, which is located on Nita's property. Which of the following is true, if the neighbors can establish a successful defense of laches? 1. The court will find that Nita cannot succeed on the merits of her trespass cause of action. 2. The court will find that laches bars the remedy of injunction, but may award damages for the permanent trespass. 3. The court will find that laches bars the remedy of damages, but may award an injunction requiring removal of the building. 4. The court will find that laches bars both the remedies of injunction and damages and will give Nita no remedy, even though she can successfully show a trespass.

Answer 27

2. The court will find that laches bars the remedy of injunction, but may award damages for the permanent trespass.

Question 28

Mavis offered to help her friend, Nyla, paint her house, so Nyla would be available for a trip the two had planned the following weekend. The work was far more difficult than Mavis had anticipated, involving a lot of scraping of old paint and new paint that failed to adhere properly. The women ended up working through both weekends. Mavis lost her deposit on the vacation and failed to obtain the rest and relaxation she had anticipated. Frustrated, Mavis has filed suit against Nyla seeking a legal unjust enrichment/restitution recovery. What result? 1. Mavis will receive restitution in the amount of her painting services. 2. Mavis will receive restitution in the amount of the vacation deposit she lost. 3. Mavis will be denied restitution because she was a volunteer. 4. Mavis will be denied restitution because Nyla did not receive a benefit.

Answer 28

3. Mavis will be denied restitution because she was a volunteer.

Question 29

Lucky opened a small brown box addressed to her and discovered an I-Phone 5. She stuck it in her pocket and, giddy with the thrill of the mystery gift, accidentally walked into her pool. The I-Phone is ruined and Apple wants her to pay its $500 value. It was not a gift. Apple had sent the phone to her by mistake. Which of the following is true? 1. Apple cannot recover the $500 because it made the mistake. 2. Apple cannot recover the $500 because Lucky was not unjustly enriched. 3. Apple cannot recover the $500 because Lucky changed her position, believing that the phone was hers. 4. Apple can recover the $500.

Answer 29

3. Apple cannot recover the $500 because Lucky changed her position, believing that the phone was hers.

Question 30

Xee rented office space for her new design business. It came unfurnished, but Xee discovered a photocopy machine in the closet. She pulled it out and used it for six months before Landlord discovered that she was using it. What recovery is available for Landlord? 1. Damages only. 2. Legal unjust enrichment only. 3. Damages or legal unjust enrichment, but not both. 4. Damages and legal unjust enrichment.

Answer 30

3. Damages or legal unjust enrichment, but not both.

Question 31

Eureka checked her bank balance a month ago and was surprised to find it was at $1,100 rather than the $100 she had expected. Her father had said he planned to cut off her weekly bank-transfers of $250 because she had gotten a tattoo. Figuring that he had changed his mind, Eureka spent the money. Now, the bank has sent her a Notice of Error, and requested repayment of the money. Which of the following, if true, is most likely to support a valid defense for Eureka? 1. She spent the money on daily massages because she had been stressed and hurting. 2. She spent the money on an exercise bike because she had been out of shape. 3. She gave the money to her roommate's sister, to pay off a loan for school textbooks. 4. She bought some pricey clothes because she had been suffered from low self-image.

Answer 31

1. She spent the money on daily massages because she had been stressed and hurting.

Question 32

Bob and Theresa own homes next to each other. Bob has been saving money for six months to plant a hedge fence between the houses. Not only will this benefit his privacy, but it will increase the value of his house. One day Theresa approaches Bob while he is mowing the lawn and asks him if he would have any objections to her planting a hedge between their property, specifically stating that she would not if Bob objected. Bob replied that he certainly did not object. After the hedge is in place, Theresa learns of Bob's saving money to do the exact same thing and also of his property's increased value. Theresa sues under unjust enrichment for the benefit of Bob's increased property value for restitution. Will Theresa likely succeed? 1. Yes. Bob knew of the benefit and did not object. Therefore, he cannot claim Theresa as a volunteer. 2. Yes. Bob's benefit was tangible in that he was able to keep the money that he had been saving to build the hedge. 3. No. Theresa cannot recover restitution for benefits for work that is of primary benefit to her. 4. No. Bob did not agree to pay for the benefits of her work.

Answer 32

4. No. Bob did not agree to pay for the benefits of her work.

Question 33

Gus presented a coupon to Car Dealership for $1,000 off a new Dodge Dart. Dealership gave Gus the discount and submitted the coupon to Corporate Dodge, which issued Dealership a $1,000 check. Corporate Dodge has now realized that the coupon was a fake. It did not run a coupon promotion in that part of the country. Corporate Dodge now wants to recover the $1,000 from Dealership. What result? 1. Corporate Dodge may recover the $1,000 from Dealership because Dealership was unjustly enriched. 2. Corporate Dodge may recover the $1,000 because it never agreed to pay for the fake coupon. 3. Corporate Dodge may not recover the $1,000 from Dealership because Dealership accepted the payment as a discharge for value. 4. Corporate Dodge may not recover the $1,000 from dealership because Corporate Dodge was negligent.

Answer 33

3. Corporate Dodge may not recover the $1,000 from Dealership because Dealership accepted the payment as a discharge for value.

Question 34

Scottie comes out of work one day to find his once very disgusting and dirty Dodge Durango all shiny and clean. Actually, it is so clean that it looks brand new. Of course, Scottie is very happy. However, before he can even get in his car and take off, Angie, an expert car cleaner and detailer, asks him to pay up. He says, "No Way, Jose!" Angie files a suit for unjust enrichment. Which of the following factual arguments made by Angie is most likely to support her claim in court? 1. Angie argues that she went ahead and cleaned Scottie's Dodge Durango because she overhead him tell a friend that he was going to hire someone that day to do it 2. Angie argues that while she was cleaning his car Scottie looked out the window of his office and smiled at her. 3. Angie argues that she was hired to clean another owner's Dodge Durango and she made a mistake by cleaning Scottie's Durango and that because of this it is unfair that he should be able to have a clean car for free. 4. Angie argues that Scottie's Dodge Durango was so disgusting and dirty that she just knew he would want it cleaned, therefore, she went ahead and cleaned it for the low price of $19.95.

Answer 34

2. Angie argues that while she was cleaning his car Scottie looked out the window of his office and smiled at her.

Question 35

Grandpa paid $15,000 to Kim, thinking that his poor driving had been the causee of the accident that had damaged her car. Several weeks later, the police called and told him that their investigation had revealed that a huge rut in Gated Community's road caused the accident. Kim won't give the money back. What remedy is available to Grandpa against Gated Community? 1. Constructive trust. 2. Equitable lien. 3. Accounting. 4. Subrogation.

Answer 35

4. Subrogation.

Question 36

Oscar stole $20,000 from Karen and put it in a pile on his desk. He added $10,000 from his cashed paycheck and $5,000 that Mom gave him for his birthday. He took $20,000 out of the pile, intending to give it back to Karen, but spent it all on a wild weekend in Vegas instead. He returned, and put $10,000 he'd received from selling his old car in the pile. Now, Karen has filed a lawsuit seeking a constructive trust. What is the maximum amount a court will award? 1. $15,000. 2. $20,000. 3. $25,000. 4. $35,000.

Answer 36

1. $15,000.

Question 37

Defendant embezzled $1,000 from his Employer and deposited the money in a bank account with $3,000 of his own money. He withdrew $800 and spent it on a trip to the Cotton Bowl. He then withdrew $2,000 and invested it in Amazon.com stock, which now has a value of $1,600. Only $1,200 remains in the bank account (where it draws no interest). What is the maximum amount of money that Employer can recover from Defendant? 1. $200, because the remaining $800 spent on the Cotton Bowl ticket cannot be traced. 2. $800, representing half the current value of the Amazon stock. 3. $1,000, via a constructive trust on that portion of the money left in the bank account. 4. $1,200, via a constructive trust on the entire amount of money left in the bank account.

Answer 37

3. $1,000, via a constructive trust on that portion of the money left in the bank account.

Question 38

Earl stole $2,000 from Fran. In which of the following circumstances would Fran prefer a constructive trust to a tort damages remedy? 1. Earl bought a used car with the money, which he still possesses. 2. Earl put the money in his bank account, and has not removed any of it. 3. Earl sent threats to Fran before stealing the money, saying he hated her and wanted to see her become poor and hungry. 4. Earl bought $2,000 of stock with the money, which is now worth $2,500

Answer 38

4. Earl bought $2,000 of stock with the money, which is now worth $2,500

Question 39

Ivor embezzled $200,000 from his employer. He gave $100,000 to his girlfriend, Jade, who was not aware of the embezzlement. Jade purchased a Mercedes SUV for $60,000 and a lump of gold for the remaining $40,000. Ivor cannot be found. The combined value of the SUV and the gold is now $60,000. When the employer sues Jade for an equitable unjust enrichment remedy, what is the maximum value employer will receive as a secured equitable remedy? 1. $200,000. 2. $100,000. 3. $90,000. 4. $60,000.

Answer 39

4. $60,000.

Question 40

Glynn bought a parcel of property and told Herman that he owned half of it. Glynn built a restaurant on the property and is currently operating it profitably. Herman then spent his own money to build a deck onto the restaurant and he paid the property taxes. Which of the following remedies is most likely available to Herman? 1. A constructive trust on the parcel of property for half its current value. 2. An equitable lien on the property for the value of the deck and the taxes. 3. An action for replevin. 4. Damages based on tort or breach of contract.

Answer 40

2. An equitable lien on the property for the value of the deck and the taxes.

Question 41

Frye took $5,000 of Kim's money and used the entire amount to buy a car. In which of the following circumstances is an equitable lien on the car Frye's best remedy? 1. The car is a vintage model with a value that will increase as it ages. 2. The car is a nondescript Toyota Corolla, and Frye has no other assets. 3. The car is a nondescript Toyota Corolla, and Frye has $100,000 in his bank account and owns a house. 4. An equitable lien is the only available remedy when a defendant uses stolen funds to buy a piece of personal property.

Answer 41

3. The car is a nondescript Toyota Corolla, and Frye has $100,000 in his bank account and owns a house.

Question 42

Jon steals $10,000 from Sue while working for her during the summer. Jon uses the money by putting it into a high technology stock that he hears is developing a new superconductor. Jon gets lucky and the company does in fact prove to have developed a new superconductor. The stock rises to the price of $50,000. Jon decides to sell the stock. He takes the proceeds and buys a $40,000 sports car and deposits $10,000 in the bank. Select the most appropriate remedy Sue has against Jon. 1. Legal restitution for the $10,000 in the bank account only. 2. Constructive trust on the car and the $10,000. 3. Equitable lien against the $40,000 sports car. 4. Subrogation against the assets of Jon.

Answer 42

2. Constructive trust on the car and the $10,000.

Question 43

Brian and Jeff are partners in a very successful casino. Due to their business endeavor, large amounts of cash are kept in their office, and each partner is paid in cash. Brian keeps his cash in a safe in his office. Jeff had an investment opportunity and was short on cash, and he misappropriated $50,000 from Brian's safe. Jeff immediately purchased Blueacre for $25,000. It is unimproved real estate that is adjacent to his residential property. He then spent $20,000 to install a pool in the backyard of his residential property. Finally, Jeff bought $5,000 worth of XYZ Stock. When Brian discovered the misappropriation a year later, he sued Jeff in equity. Blueacre has declined $2,000 in value; the stocks have increased in value by $1,000; and Jeff is still living at his residence and enjoying his pool. Which of the following forms of relief are likely to be available to Brian? 1. A constructive trust on Jeff's residential property for $20,000. 2. A constructive trust on Jeff's residential property for $20,000, a constructive trust on Blueacre for $20,000, and a constructive trust on the stock. 3. A constructive trust on Blueacre for $23,000 plus $2,000 for a deficiency judgment, an equitable lien for $20,000 on Jeff's residential property and a constructive trust on the stock. 4. Only a damages judgment for $50,000.

Answer 43

3. A constructive trust on Blueacre for $23,000 plus $2,000 for a deficiency judgment, an equitable lien for $20,000 on Jeff's residential property and a constructive trust on the stock.

Question 44

On April 15, a tech seller entered into a valid written contract with a buyer to purchase a slimline, silver-toned personal computer for $3,000. The buyer agreed to pick up and pay for the computer at tech seller's store on April 30. The buyer failed to show up on April 30 and during the next week failed to answer emails and cell phone messages from the tech seller. The tech seller did not specifically mention his intention to resell the computer. On May 10, the tech seller sold the computer at a private sale to a purchaser, who paid the same price ($3,000) in cash. The slimline, silver-toned personal computer is a popular product. The tech seller can buy from the manufacturer more units than it can sell at retail. If the tech seller sues the buyer for breach of contract, the tech seller will probably recover 1. nothing, because it received a price on resale equal to the contract price that the buyer had agreed to pay. 2. nothing, because the tech seller failed to give the buyer proper notice of the tech seller's intention to resell. 3. The tech seller's anticipated profit on the sale to the buyer plus incidental damages, if any, because the tech seller lost that sale. 4. $3,000 (the contract price), because the buyer intentionally breached the contract.

Answer 44

3. The tech seller's anticipated profit on the sale to the buyer plus incidental damages, if any, because the tech seller lost that sale.

Question 45

A buyer bought 100 cartons of hard point nails from seller. The sales contract provided that the buyer would make payment prior to inspection. The 100 cartons were shipped, and the buyer paid the seller. Upon inspection, however, Johnston discovered that the nails were tough point. The buyer thereupon tendered back the cartons of nails to the seller and demanded return of his payment. The seller refused on the ground that there is no difference between hard point and tough point nails. What is the buyer's remedy because the nails were nonconforming? 1. Specific performance. 2. Damages measured by the difference between the value of the goods delivered and the value of conforming goods. 3. Damages measured by the price paid plus the difference between the contract price and the cost of buying substitute goods. 4. None, since he waived his remedies by agreeing to pay before inspection.

Answer 45

3. Damages measured by the price paid plus the difference between the contract price and the cost of buying substitute goods.

Question 46

A high-volume recreational vehicle (RV) seller agreed in a valid written contract with a buyer to sell a mid-level RV for $30,000. The manufacturer's price of the RV delivered to the seller was $25,000. As the contract provided, the buyer paid the seller $5,000 in advance and promised to pay the full balance upon delivery of the RV. The contract contained no provision for liquidated damages. Prior to the agreed delivery date, the buyer notified the seller that he would be financially unable to conclude the purchase; and the seller thereupon resold the same RV that the buyer had ordered to a third person for $28,000 cash. If the buyer sues the seller for restitution of the $5,000 advance payment, which of the following should the court decide? 1. The buyer's claim should be denied, because, as the party in default, he is deemed to have lost any right to restitution of a benefit conferred on the seller. 2. The buyer's claim should be denied, because, but for his repudiation, the seller would have made a profit on two boat sales instead of one. 3. The buyer's claim should be upheld in the amount of $3,000, because the seller's damages were only $2,000 (the $30,000 contract price minus the $28,000 resale price). 4. The buyer's claim should be upheld in the amount of $5,000 because the seller did not notify the buyer of the resale.

Answer 46

2. The buyer's claim should be denied, because, but for his repudiation, the seller would have made a profit on two boat sales instead of one.

Question 47

A grower entered into a contract to purchase grass seed for $1,000 from a seed company. The grower told the seed company that he planned to use the seed to grow sod, to sell for a profit, and he can prove that he would have earned $5,000 profit on the sale of the sod grown with the seed. When the bags of seed arrived, the buyer opened them and discovered they were filled with worms. The grower was able to purchase substitute seed for $1,500 and incurred $300 disposing of the wormy seeds. When the grower brings a breach of contract action against the seed company, which of the following is true of his damages recovery? 1. The grower will receive $500. 2. The grower will receive $800. 3. The grower will receive $1,800. 4. The grower will receive $6,800.

Answer 47

2. The grower will receive $800.

Question 48

A farmer raises chickens and has a real problem in the winter keeping the chicken houses warm. He purchased five heaters from a supply company for $100 each ($500) total. He signed a purchase contract that stated, “supply company warrants this product against defects for a period of one year, but shall not be liable for consequential damages.” The heaters functioned properly for the first three weeks of winter, but when a sudden freeze hit, all five heaters stopped working and the farmer has been unable to repair them. Half of the farmer's chickens died. The farmer expected to sell the dead chickens in the spring for the usual market price of $4,000. He would have had to pay an additional $500 to feed and care for them until that time. He paid to feed and care for the remaining chickens, and because of a national chicken shortage, was able to sell the remaining half of his chickens for $6,000. The farmer has brought a lawsuit seeking damages from the supply company for losses he incurred because of the five defective heaters. What is the maximum amount of his recovery? 1. $500 (the market value of the heaters at the time they were delivered). 2. $3,500 (the profit the farmer expected to make selling the dead chickens, under normal market conditions). 3. $5,500 (the profit the farmer actually would have made selling the dead chickens if they had lived and been available for sale during the chicken shortage). 4. $6,000 (the market value of the heaters at the time they were delivered plus the profit Craig actually would have made selling the dead chickens if they had lived and been available for sale during the chicken shortage).

Answer 48

1. $500 (the market value of the heaters at the time they were delivered).

Question 49

A seller entered into a contract to sell 300 designer trash cans to a buyer for $10,000. The seller created the trash cans and delivered them to the buyer, but she refused to accept them, claiming that they had gone out of style. Word got out about the buyer's determination that the seller's trash cans were no longer stylish, causing a drop in the seller's business. A client, in particular, sent a note to the seller on the day she was to sign a $50,000 contract stating that if the buyer wouldn’t buy his trash cans, neither would she. In a majority of jurisdictions, which of the following is true of the seller's recovery against the buyer? 1. The seller will be able to recover the profit he lost on the contract with the client. 2. Whether or not the seller tries to resell the trash cans, he can choose to recover damages measured by either the difference between the contract and market prices or by the contract price alone. 3. The seller must resell the trash cans to seek any damages for the loss of the benefit of his bargain. 4. If the seller is able to resell the trash cans in a commercially reasonable manner, he may recover damages measured by the difference between the contract price and the resale price as well as expenses incurred in the resale.

Answer 49

4. If the seller is able to resell the trash cans in a commercially reasonable manner, he may recover damages measured by the difference between the contract price and the resale price as well as expenses incurred in the resale.

Question 50

A buyer entered into a written contract to purchase from a seller 1,000 sets of specially manufactured ball bearings of a nonstandard dimension for a price of $10 per set. The seller correctly calculated that it would cost $8 to manufacture each set. Delivery was scheduled for 60 days later. Fifty-five days later, after the seller had completed production of the 1,000 sets, the buyer abandoned the project requiring use of the specially manufactured ball bearings and repudiated the contract with the seller. After notifying the buyer of his intention to resell, the seller sold the 1,000 sets of ball bearings to a salvage company for $2 per set. The seller then sued the buyer for damages. What damages should the court award to the seller? 1. $2 per set, representing the difference between the cost of manufacture and the price the buyer agreed to pay. 2. $6 per set, representing the difference between the cost of manufacture and the salvage price. 3. $8 per set, representing the lost profits plus the unrecovered cost of manufacture. 4. Nominal damages, as the seller failed to resell the goods by public auction.

Answer 50

3. $8 per set, representing the lost profits plus the unrecovered cost of manufacture.

Question 51

A seller entered into a contract to deliver lemons to a buyer. When she tries to make delivery, the buyer refuses, claiming without justification that the lemons were of too poor quality to meet the terms of the contract. The contract price was $5,000 and she can resell the lemons for $4,000, incurring $200 in marketing costs to do so. A steady client learned of buyer’s claim that the seller sold inferior lemons and refused to sign the usual monthly contract. The seller can prove that she would have earned $1,000 in profits from that contract. After seller establishes that the buyer breached the contract, what amount of damages will she be able to recover? 1. $1,000. 2. $1,200. 3. $2,000. 4. $2,200.

Answer 51

2. $1,200.

Question 52

A rancher raises cows and has a real problem in the winter keeping the cows houses warm. He purchased five heaters from WarmCo for $1,000 each ($5,000 total). The heaters functioned properly for the first three weeks of winter, but when a sudden freeze hit, two of the heaters stopped working. The rancher called around and learned that it would cost $400 to fix the heaters, and the repair woman could not do for two weeks. It would have been possible to rent similar heaters at a cost of $100 total, but rancher did not want to make the long drive to get them. Although rancher could have kept the cows warm with three heaters, it would have required moving the cows during the night. Moving the cows would have required the rancher to lose sleep. The rancher failed to move the cows for the first week after the break-down. One cows died because of the cold. The cow would have netted the rancher a profit of $300. Rather than wait another week for the repair, the rancher purchased two new heaters for $125 each ($250 total). The rancher has brought a lawsuit seeking damages from WarmCo for losses he incurred because of the two defective heaters. Which of the following is true of the rancher’s damages recovery? 1. The rancher can get the $400 cost of repair only. 2. The rancher can get the $400 cost of repair plus the $100 cost of renting substitutes. 3. The rancher can get the $400 cost of repair plus the lost profit on the cow of $300. 4. The rancher can get get $50 (the difference between the cost of the new heaters and the original heaters) plus the $300 lost profits on the cow.

Answer 52

2. The rancher can get the $400 cost of repair plus the $100 cost of renting substitutes.

Question 53

A homeowner entered into a contract with a buyer to sell her home for $200,000. The buyer gave the homeowner a $20,000 deposit and paid $500 for a home inspection. One week before the scheduled closing, the buyer informed the homoeowner that she had found a better house for a lower price and would not pay the remainder of the purchase price. The homeowner was able to resell the house in three months for $185,000, after incurring $1,000 in resell costs. Which of the following is true of the parties’ damages recoveries? 1. The homeowner can recover $15,000. 2. The homeowner can recover $15,000 plus $1,000. 3. The homeowner can recover $20,000 plus $500. 4. The buyer can recover $4,000.

Answer 53

4. The buyer can recover $4,000. Correct: The homeowner can recover contract price minus resale price, but don't forget the buyer's deposit. The buyer can recover the remaining $4,000 in quasi-contract/unjust enrichment if the homeowner refuses to give it back.

Question 54

On March 15, a homeowner and a buyer signed a writing in which the homeowner agreed to convey Bluemeter to buyer for $100,000 on May 1. On April 15, without notice to buyer, homeowner sold and conveyed Bluemeter to a city resident for $120,000. The buyer bought Limemeter, a property in the same vicinity with roughly comparable acreage, for $110,000. After buyer prevails in the suit against homeowner for breach of contract, which of the following may the buyer reasonably expect to recover? 1. Specific performance of the contract to convey Bluemeter. 2. $10,000. 3. $20,000, if city resident paid the fair market value for Bluemeter. 4. $20,000, plus the amount, if any, by which the fair market value of Bluemeter on the date of property owner's breach exceeded $100,000.

Answer 54

4. $20,000, plus the amount, if any, by which the fair market value of Bluemeter on the date of property owner's breach exceeded $100,000. This is a seller's breach of a real estate contract. If the house were still available, buyer could get specific performance. It was, however, sold to a BFPV. This mean the buyer gets damages measured by the market price of the house at the time of the breach minus the contract price. Note that inserting a "cover" price does not work because all pieces of real estate are unique.

Question 55

A woman entered into a valid written contract to sell Green Fields, a large tract of land, to a purchaser. At that time, Green Fields was owned by the woman's sister; the woman had no title to Green Fields and was not the agent of the sister. After the contract was executed and before the scheduled closing date, the sister died intestate, leaving the woman as his sole heir. Shortly thereafter, the woman received an offer for Green Fields that was substantially higher than the purchase price in the contract with the purchaser. The woman refused to close with the purchaser even though he was ready, willing, and able to close pursuant to the contract. The purchaser brought an appropriate action for specific performance against the woman. In that action, the purchaser should be awarded 1. nothing, because the woman had no authority to enter into the contract with the purchaser. 2. nothing, because the doctrine of after-acquired title does not apply to executory contracts. 3. judgment for specific performance, because the woman acquired title prior to the scheduled closing. 4. judgment for specific performance, to prevent unjust enrichment of the woman.

Answer 55

3. judgment for specific performance, because the woman acquired title prior to the scheduled closing.

Question 56

A landowner entered into an enforceable written agreement with a buyer to sell Big Pines, an apartment complex, to Buyer. The agreement provided that a good and marketable title was to be conveyed free and clear of all encumbrances. However, the agreement was silent as to the risk of fire prior to closing, and there is no applicable statute in the state where the land is located. The premises were not insured. The day before the scheduled closing date, Big Pines was wholly destroyed by fire. When the buyer refused to close, the landowner brought an action for specific performance. If the landowner prevails, the most likely reason will be that 1. the failure of the buyer to insure his interest as the purchaser of Big Pines precludes any relief for him. 2. the remedy at law is inadequate in actions concerning real estate contracts and either party is entitled to specific performance. 3. equity does not permit consideration of surrounding circumstances in actions concerning real estate contracts. 4. the doctrine of equitable conversion applies.

Answer 56

4. the doctrine of equitable conversion applies. If you see a question involving a real estate contract in which there is a death, destruction of the property, a tort happening on the property or a someone seeking to place a lien on the property between the time of the parties entering into the contract and the closing, think - equitable conversion.

Question 57

A lessee leased in writing a 100-acre farm from a leasor for five years at $2,000 per year, with an option to purchase "five acres of the land for $10,000 cash" at the end of the lease term. Before the lease was executed, the leasor orally promised to have a five-acre parcel surveyed before the end of the lease term. The lessee took possession of the farm and paid the rent for five years. During the fifth year, having decided that he would exercise the purchase option, the lessee planted several fruit trees and built a large grain silo on the property. At the end of the term, the lessee tendered the leasor $10,000 and demanded a conveyance, but the leasor repudiated the option agreement and retook possession of the farm. He had never had the five-acre parcel surveyed. Assume that the leasor is not liable to the lessee for breach of a land-sale contract. In an action by the lessee against the leasor for the reasonable value of the improvements that the lessee added to the farm, which of the following theories would best support the lessee's claim? 1. Quasi-contract, for benefits unofficiously and nongratuitously conferred upon the leasor by the lessee. 2. Tort, for conversion by the leasor in retaking possession of the improvements. 3. Breach of trust by the leasor as trustee of a resulting trust of the improvements. 4. Breach by the leasor of an implied-in-fact promise (manifested by his retaking possession of the farm and improvements) to compensate the lessee for the improvements.

Answer 57

1. Quasi-contract, for benefits unofficiously and nongratuitously conferred upon the leasor by the lessee. This is unjust enrichment, quasi-contract. The lessee reasonably thought he would own the property and so was not a volunteer.

Question 58

For a consideration of $5,000, a landowner gave a purchaser a written option to buy Silveracre for $200,000. The option was assignable. For a consideration of $10,000, the purchaser subsequently gave an option to a buyer to purchase Silveracre for $225,000. The buyer exercised his option. The purchaser thereupon exercised his option. The purchaser paid the agreed price of $200,000 and took title to Silveracre by deed from the landowner. Thereafter, the buyer refused to consummate his purchase. The purchaser brought an appropriate action against the buyer for specific performance, or, if that should be denied, then for damages. The purchaser counterclaimed for return of the $10,000. In this action the court will 1. grant money damages only to the purchaser. 2. grant specific performance to the purchaser. 3. grant the purchaser only the right to retain the $10,000. 4. require the purchaser to refund the $10,000 to the buyer.

Answer 58

2. grant specific performance to the purchaser. The options are distracting, but they are valid, so you need to trace them to find the ultimate question, which is whether a seller of real estate is entitled to specific performance. The answer is yes. Real estate is unique and either the buyer or the seller is entitled to specific performance and is not required to settle for damages.

Question 59

A condominium resort entered into a contract to sell one unit to retiree. The condominium resort representative told retiree that the units were built from all-natural compounds that emitted “next-to no chemical residues” into the living areas. Within days of moving in, however, the retiree smelled a “strong industrial aroma” throughout her unit, and discovered that other residents had similar complaints. A test by an inspector revealed multiple chemical residues in the air of her unit. The retiree paid $300,000 for the unit, which was approximately its fair market value. The value of a unit with no chemical residues would have been $320,000. A real estate agent has advised the retiree that she should be able to sell the unit for $250,000. The retiree has suffered emotional distress because of the smell, and has incurred $10,000 in medical bills. The retiree has prevailed in her lawsuit against the condominium resort for fraud. Which of the following is true of the remedies are available to the retiree? 1. If the retiree is in a jurisdiction that allows only out-of-pocket damages for fraud, she will be able to recover $50,000. 2. If the retiree is in a jurisdiction that allows only out-of-pocket damages for fraud, she will be able to recover $60,000. 3. If the retiree is in a jurisdiction that allows expectancy damages for fraud, she will be able to recover $70,000. 4. The retiree cannot choose to rescind the contract because she will be able to sell the unit and recover damages.

Answer 59

2. If the retiree is in a jurisdiction that allows only out-of-pocket damages for fraud, she will be able to recover $60,000.

Question 60

Stella wrote a will devising all real property to Margot and all personal property to Nita. Arthur wrote a will devising all real property to Bennett and all personal property to Chad. Stella entered into a valid written contract to sell the family farm to Arthur for $200,000, with the sale to be consummated in 8 weeks, after inspections had occurred and Stella had been able to find another place to live. Arthur died one week after they signed the contract with $200,000 in his bank account and Stella died two weeks after that with the deed to the farm in her safe deposit box. All of the beneficiaries of the wills want as much as they can get. Assume that common law rules apply. Who is entitled to the $200,000 in Arthur’s bank account? 1. Margot 2. Nita 3. Bennett 4. Chad

Answer 60

2. Nita

Question 61

A landlord owned Blue Lagoon in fee simple. Three years ago, the landlord and a tenant agreed to a month-to-month tenancy with the tenant paying the landlord rent each month. After six months of the tenant's occupancy, the landlord suggested to the tenant that she could buy Blue Lagoon for a monthly payment of no more than her rent. The landlord and the tenant orally agreed that the tenant would pay $35,000 in cash, the annual real estate taxes, the annual fire insurance premiums, and the costs of maintaining Blue Lagoon, plus the monthly mortgage payments that the landlord owed on Blue Lagoon. They further orally agreed that within six years the tenant could pay whatever mortgage balances were then due and the landlord would give her a warranty deed to the property. The tenant's average monthly payments did turn out to be about the same as her monthly rent. The tenant fully complied with all of the obligations she had undertaken. She made some structural modifications to Blue Lagoon. Blue Lagoon is now worth 25% more than it was when the landlord and the tenant made their oral agreement. The tenant made her financing arrangements and was ready to complete the purchase of Blue Lagoon, but the landlord refused to close. The tenant brought an appropriate action for specific performance against the landlord to enforce the agreement. The court should rule for 1. the landlord, because the agreements were oral and violated the statute of frauds. 2. the landlord, subject to the return of the $25,000, because the arrangement was still a tenancy. 3. the tenant, because the doctrine of part performance applies. 4. the tenant, because the statute of frauds does not apply to oral purchase and sale agreements between landlords and tenants in possession.

Answer 61

3. the tenant, because the doctrine of part performance applies. The Statute of Frauds would normally bar enforcement of an oral contract for real estate, but the doctrine of part performance is an exception to the application of the Statute of Frauds.

Question 62

A property owner owned a large tract of land, which he divided into a number of parcels. A buyer came to visit and selected parcel 47 because a stream ran through it and because a number of trees provided shade. The property owner’s personal lawyer prepared the contract. She read property owner’s notes to say parcel 41, and so that is what she wrote into the contract and the deed. When the documents were delivered, the buyer glanced over them without putting on his reading glasses and assumed the “1” to be a “7.” He signed the documents and authorized transfer of the $200,000 purchase price to the property owner. When his architect showed up at parcel 47 to begin drawing up plans, the property owner turned him away. Property owner insists that buyer purchased parcel 41, which has a fair market value of $150,000. Which of the following remedies will most reasonably be available to the buyer? 1. Reformation of the contract and deed to convey parcel 47 and give him ownership of it. 2. Rescission of the contract and restitution of the $200,000 buyer paid. 3. Damages in the amount of $50,000, representing the difference in value between parcel 47 and parcel 41. 4. A money judgment in the amount of $50,000, representing the property owner’s unjust enrichment.

Answer 62

1. Reformation of the contract and deed to convey parcel 47 and give him ownership of it.

Question 63

On February 15, a landowner and a builder entered into a written contract in which the builder agreed to build a pool behind landowner's house at a price of $200,000. The contract provided for payment of $100,000 upon half completion, and a final payment of $100,000 upon completion. Under a "liquidated damages" clause in the agreement, the builder promised to pay the homeowner $500 for each day's delay in completing the house after the following August 1. The homeowner, however, told the builder on February 1, before the contract was signed, that he would be away for the summer and would not return to occupy the house until September 1. Because she was busy with other construction jobs, the builder did not complete the pool until August 15. The landowner returned on September 1 as planned and occupied the house. Ten days later, after making the $100,000 final payment to the builder, the landowner learned for the first time that the pool had not been completed until September 1. If the landowner sues the builder for breach of contract on account of the fifteen-day delay in completion, which of the following will the court probably decide? 1. The homeowner will recover damages as specified in the contract, i.e., $500 multiplied by fifteen. 2. The homeowner will recover his actual damages, if any, caused by the delay in completion. 3. Having waived the delay by occupying the house and making the final payment, the landowner will recover nothing. 4. The landowner will recover nothing because he is estopped from requiring completion of the pool before he would be in residence.

Answer 63

2. The homeowner will recover his actual damages, if any, caused by the delay in completion. The liquidated damages clause in invalid as a penalty because it is not a reasonable estimate of the damages the landowner would suffer because of the breach.

Question 64

A father entered into a valid written contract with a lead singer of a rock band for it to perform at the son's graduation party for a price of $1,000. The father chose the rock band because lead singer told him that his good friend, a famous vocalist, would appear and sing one song during the event. The father believed the lead singer because he had heard on the news that the famous vocalist occasionally would "pop in" on private parties to sing. In fact, the lead singer did not know the famous vocalist and, instead, presented a look-alike imposter on the night of the party. The son's savvy friends recognized the deception and booed the band off the stage. The son was so distraught he failed to show up on the first day of his summer job, and lost it. He would have earned $2,000 at the job and was unable to find comparable employment. The famous vocalist charges $10,000 per "pop-in" private party appearance. After the father establishes liability in a jurisdiction that allows benefit-of-the-bargain damages for fraud, what is the maximum amount of damages can father reasonably expect to receive from lead singer and his band? 1. $1,000, representing the full contract price for the performance. 2. $1,000, representing the full contract price for the performance plus $2,000 for son's lost wages. 3. $1,000, if the jury finds that the rock band's performance without the famous vocalist had no value. 4. $10,000, if the jury finds that the rock band's performance without the famous vocalist had no value.

Answer 64

4. $10,000, if the jury finds that the rock band's performance without the famous vocalist had no value.

Question 65

A father made a promise to furnish his son and the latter's fiancée a house on their wedding day, planned for June 10, 2017. The father telephoned a construction firm, and the two entered into a valid written contract whereby construction firm agreed further to build a house on the plot conforming to father's specifications for a price of $18,000. The father agreed to make payments of $2,000 on the first of every month for nine months beginning August 1, 2016, so long as the specifications were met. The father made three $2,000 payments for the work done in July, August, and September 2016. The construction firm worked through October, but no work was done from November 1, 2016, to the end of February 2017, because of bad weather, and the father made no payments during that period. The construction firm did not object. On March 1, 2017, the construction firm demanded payment of $2,000; but the father refused on the grounds that no construction work had been done for four months and certain specifications had not been met. The construction firm thereupon abandoned work and repudiated the agreement. Assuming that the construction firm committed a total breach on March 1, 2017, what would be the likely measure of the father's damages in an action against the construction firm for breach of contract? 1. Restitution of the three monthly installments paid in August, September, and October. 2. What it would cost to get the house completed by another contractor, minus installments not yet paid to the contractor. 3. The difference between the market value of the partly built house, as of the time of the contractor's breach, and the market value of the house if completed according to specifications. 4. In addition to other legally allowable damages, an allowance for the father's mental distress if the house cannot be completed in time for the son's wedding on June 10, 2017.

Answer 65

2. What it would cost to get the house completed by another contractor, minus installments not yet paid to the contractor. There are a lot of confusing facts in this hypothetical, but the question boils down to: what is the measure of damages for a contractor's breach? The measure is cover (substitute services) minus contract price. Here, the wrinkle is that buyer has made installment payments. You must reason out that you must modify the formula, so buyer recovers cover minus only that portion of the contract price that he has not yet paid.

Question 66

In a writing signed by both parties, a renowned musician, agreed for a fee of $50,000 to write and perform an original piece for bride's wedding. The musician and the bride had a number of disagreements during the first several days after the agreement. Hoping to avoid outright fights, the musician, without the bride's knowledge, assigned to his protege, an up-and-coming song writer and performer, "all of my rights and duties under my composition and performance contract" with the bride. The protege expressly promised the bride to proceed with the composition to the best of his ability. The bride, on learning of the assignment, refused to allow the protege to proceed as composer and brought an action against the musician to compel him to resume and complete performance of the contract. Is the bride entitled to such relief? 1. Yes, because the musician's services under the contract are unique. 2. Yes, because the amount of the bride's damages will be impossible to prove with certainty. 3. No, because the musician-bride contract is one for personal services by the musician. 4. No, because the musician effectively delegated his remaining duties under the musician-bride contract to the protege.

Answer 66

3. No, because the musician-bride contract is one for personal services by the musician. A court will not order specific performance of a personal services contract.

Question 67

A contractor agreed to build a new stadium for a public school. A subcontractor agreed with the contractor to put in the artificial turf for $200,000. The subcontractor supplied goods and services worth $150,000, for which the contractor made progress payments aggregating $100,000 as required by the subcontract. The subcontractor then breached by refusing unjustifiably to perform further. The contractor reasonably spent $120,000 to have the work completed by another subcontractor. The subcontractor sues the contractor for the reasonable value of benefits conferred, and the contractor counterclaims for breach of contract. Which of the following should be the court's decision? 1. The subcontractor recovers $50,000, the benefit conferred on the contractor for which the subcontractor has not been paid. 2. The subcontractor recovers $30,000, the benefit the subcontractor conferred on the contractor minus the $20,000 in damages incurred by the contractor. 3. The contractor recovers $20,000, the excess over the contract price that was paid by the contractor for the performance it had bargained to receive from the subcontractor. 4. Neither party recovers anything, because the subcontractor committed a material, unexcused breach and the contractor received a $50,000 benefit from the subcontractor for which subcontractor has not been paid.

Answer 67

3. The contractor recovers $20,000, the excess over the contract price that was paid by the contractor for the performance it had bargained to receive from the subcontractor. Where there is a breach of contract action, payment of those damages comes first. That is, the subcontractor could possibly recover in unjust enrichment for benefits conferred even though he breached the contract, but only in excess of the damages suffered by the nonbreaching party. Here, those damages exceed the benefits conferred and so the contractor gets cover minus contract price as damages.

Question 68

A contractor and a health club enter into a contract whereby the contractor agreed to build a new exercise room for $100,000. When the contractor had completed half of the job, the health club said that it was losing customers and no longer wanted the new exercise room. At this point, contractor had invested $50,000 in the job. It would cost an additional $50,000 to complete the job. The contract price was below market rate, which is $120,000 for this type of contract. What is the greatest amount of monetary recovery available to the contractor? 1. $50,000, representing the contractor's reliance expenses. 2. $50,000, representing the contractor's expectancy interest. 3. $60,000, as restitution for the value contractor conferred on the health club. 4. $100,000, representing the contractor's expectancy interest.

Answer 68

3. $60,000, as restitution for the value contractor conferred on the health club.

Question 69

On January 1, a contractor and property owner agreed in writing that the contractor would build a house on the property owner's lot according to set plans and specifications for $60,000, the work to commence on April 1. The property owner agreed to make an initial payment of $10,000 on April 1, and to pay the balance upon completion of the work. On February 1, the contractor notified the property owner that he (the contractor) would lose money on the job at that price, and would not proceed with the work unless the property owner would agree to increase the price to $90,000. The property owner thereupon, without notifying the contractor, agreed in writing with a builder for the builder, commencing April 1, to build the house for $75,000, which was the fair market cost of the work to be done. On April 1, both the contractor and the builder showed up at the building site to begin work, the contractor telling the builder that he had decided to "take the loss" and would build the house for $60,000 as originally agreed. The property owner dismissed the contractor and allowed the builder to begin work on the house. Assume that the contractor is liable to the property owner for breach of contract and also assume the following additional facts: the builder finished the house on schedule and then showed the property owner that he (the builder) had spent $85,000 on the job. The property owner thereupon paid the builder the full balance of their contract price plus an additional $10,000 so that the builder would not lose money. In a contract action by the property owner against the contractor, the property owner will recover 1. the difference between the fair market value of the completed house and the contractor's original contract price. 2. $30,000, the difference between the contractor's original contract price and the amount the contractor demanded on February 1. 3. $25,000, the difference between the contractor's original contract price and the total amount the property owner paid the builder for building the house. 4. $15,000, the difference between the contractor's original contract price and the builder's contract price.

Answer 69

4. $15,000, the difference between the contractor's original contract price and the builder's contract price. This requires you to identify the measure of damages for breach of contract by a service contractor. It is cover minus contract. The wrinkle here is that the buyer overpaid for cover, after initially negotiating a price. The appropriate numbers are the original contract price and the cover price stated in the contract.

Question 70

On April 15, a contractor, in a signed writing, contracted with a homeowner to build an outdoor kitchen as an extension of the existing patio. The contractor agreed to provide all materials for the job in addition to all of the labor required. On April 30, the homeowner without legal excuse repudiated the contract. Notwithstanding the homeowner's repudiation, however, the contractor subsequently purchased for $5,000 materials that could only be used in remodeling the homeowner's kitchen, and promptly notified the homeowner, "I will hold you to our contract." If allowed to perform, the contractor would have made a profit of $3,000 on the job. If the homeowner refuses to retract his repudiation, and the contractor sues him for damages, what is the maximum that the contractor is entitled to recover? 1. Nothing, because he failed to mitigate his damages. 2. $3,000, his expectation damages. 3. $5,000, on a restitutionary theory. 4. $5,000, his reliance damages, plus $3,000, his expectation damages.

Answer 70

2. $3,000, his expectation damages.

Question 71

An unjust enrichment or restitutionary remedy is available to a breaching contractor, with the contractor able to recover the value conferred in excess of the breach of contract damages suffered by the buyer. A painter contracted with a mall owner to paint the entire exterior of the shopping mall for $6,000. After completing half the job, the painter demanded $3,000. The mall owner rightfully refused. The painter immediately walked off the job. The mall owner was able to find another painter to complete the job for $2,000, and suffered no other damages. Which of the following is true of the rights of the parties? 1. The painter can recover nothing, because payment was expressly conditioned on completion of the entire job. 2. The painter can recover his actual expenditures plus anticipated profit in completing half of the job, up to a maximum recovery of $3,000. 3. The painter can recover the reasonable value of his services in painting half the mall, up to a maximum of $3,000. 4. The painter can recover the reasonable value of his services in painting half the mall, minus the $2,000 mall owner paid to complete the job.

Answer 71

3. The painter can recover the reasonable value of his services in painting half the mall, up to a maximum of $3,000. An unjust enrichment or restitutionary remedy is available to a breaching contractor, with the contractor able to recover the value conferred in excess of the breach of contract damages suffered by the buyer.

Question 72

A florist entered into a written agreement to provide flower arrangements for a celebrity's large, highly publicized wedding. The florist's usual price for this type of event was $10,000. Although her expenses would equal the contract price, the florist agreed to a rate of $8,000 because she believed that the publicity she would gain would result in an increase in business worth at least $2,000 in the next few months, and worth at least $10,000 over the next year. Two weeks before the wedding, the celebrity told florist that he had contracted with another florist to provide the arrangements for the wedding. At this point, florist had devoted labor worth $1,000 toward preparing for the celebrity's event. After she establishes the unjustified breach of contract, what is the best remedy florist can reasonably expect to receive? 1. Nothing, because she did not expect to make a profit on the contract. 2. $1,000, for the costs she incurred preparing to fulfill the contract. 3. $2,000, for the portion of lost profits she expected to make in the next few months. 4. $10,000, for the entire amount of lost profits she expected to make during the next year.

Answer 72

2. $1,000, for the costs she incurred preparing to fulfill the contract.

Question 73

A federal district court grants City's application for a TRO restraining Peaceful Protesters from congregating in groups greater than 10 in the public park. Protesters' legal advisor says there is a "good chance" the TRO violates the free speech clause of the federal constitution. Protesters decide to risk it, and disobey the TRO. The City moves to hold them in contempt, and at the contempt hearing, they argue that the TRO was unconstitutional. Which of the following is true? 1. In a majority of jurisdictions, Protesters will not be able to assert their defense, and may constitutionally be convicted of criminal contempt. 2. In California, Protesters will not be able to assert their defense, and may constitutionally be convicted of criminal contempt. 3. In California and a majority of jurisdictions, Protesters will not be able to assert their defense, and may constitutionally be convicted of criminal contempt. 4. Protesters may not constitutionally be held in either civil or criminal contempt if the TRO violated the free speech clause of the federal constitution.

Answer 73

1. In a majority of jurisdictions, Protesters will not be able to assert their defense, and may constitutionally be convicted of criminal contempt. This is the collateral bar rule, which a majority of jurisdictions follow and which the U.S. Supreme Court has held does not violate the U.S. Constitution. California does not follow the collateral bar rule.

Question 74

A court ordered an animal rights protester to pay $200 per day to the court until he submitted a signed and notarized statement promising not to violate the court order prohibiting him from trespassing on animal research facility properties. Which of the following is true? 1. The court could have imposed the contempt remedy without any sort of hearing so long as Wyatt was in the presence of the judge when the judge imposed the remedy. 2. The court could have imposed the remedy by means of civil procedures and without a jury. 3. The court could not have imposed the remedy by means of civil procedures; criminal procedures were required, but not a jury trial. 4. The court could only impose the remedy after providing the protester full criminal procedures, including a jury trial.

Answer 74

2. The court could have imposed the remedy by means of civil procedures and without a jury. This is civil coercive contempt because the protester holds the keys to removing the daily payment in his pocket. This is not direct criminal contempt because presumably the injunction ordered him to do or not do something out of court.

Question 75

If someone held in contempt is sitting in jail, which of the following is true of the contempt? 1. Criminal procedures must have been used. 2. The contempt must have occurred in the judge's presence. 3. The purpose of the contempt must be punishment. 4. The contempt must be either direct criminal contempt, indirect criminal contempt, or civil coercive contempt.

Answer 75

4. The contempt must be either direct criminal contempt, indirect criminal contempt, or civil coercive contempt. All of these include jail time as a possible remedy, either to punish (criminal) or coerce (civil).

Question 76

A court has ordered that Husband be held in jail until he pays $4,000 in child support to Former Wife. Which of the following assertions, if true, is most likely to cause a court to release Husband from jail without paying the child support? 1. Former Wife is hiding assets and does not need the child support. 2. Husband will never comply with the court order because his current girlfriend has credibly threatened to leave him and ruin his reputation on social media if he every pays a penny to Former Wife. 3. Husband has no assets and an interactional disability that makes him unable to make money to pay any amount in child support. 4. Husband did not intend to fail to pay the child support.

Answer 76

3. Husband has no assets and an interactional disability that makes him unable to make money to pay any amount in child support.

Question 77

A home owner successfully proved that a neighbor was committing a nuisance by hosting loud all-night jam sessions in his garage in a residential neighborhood. The home owner obtained a permanent injunction ordering the neighbor to stop. He has not. If a court finds the neighbor to be in contempt, which of the following actions would require the court to use criminal procedures? 1. Order the neighbor to pay $100 per day to the government until he stops holding the jam sessions. 2. Order the neighbor to pay $5,000 to the government for disobeying the court’s order, using civil procedures. 3. Order the neighbor into jail until he agrees to stop holding the jam sessions. 4. Order the neighbor to pay $1,000 to the home owner for sleep lost due to the jam sessions that violated the injunction.

Answer 77

2. Order the neighbor to pay $5,000 to the government for disobeying the court’s order, using civil procedures.

Question 78

Witness refuses to answer questions during trial of a tort claim for personal injury. Which of the following is true of the contempt remedy the court may impose? 1. Witness may only be held in civil contempt, because the trial is civil. 2. Witness's conduct may lead to either a civil or criminal contempt remedy. 3. Witness may be held in criminal contempt, but if so, the court must hold a hearing and use criminal procedures. 4. The court may not impose a contempt remedy until the end of the trial.

Answer 78

2. Witness's conduct may lead to either a civil or criminal contempt remedy. The court may hold Witness in civil coercive contempt by imposing a purgeable remedy ("Go to jail until you agree to testify.") Or the court may hold Witness in direct criminal contempt because the act disrupts an ongoing court proceeding and occurs in the presence of the judge.

Question 79

A federal court issued a permanent injunction requiring Lot Owner to remove approximately 500,000 used tires, because they constituted a fire danger and a public nuisance. Lot Owner refused to obey, so the court ordered him into jail until he complied. Lot Owner has now been in jail for two years, and claims he is not able to comply because he is stuck in jail, without access to his lot or the pile of old tires. Which of the following is true? 1. Court must release Lot Owner from jail because he is unable to comply. 2. Court must release Lot Owner from jail because his time in jail has exceeded the 18 month limit of a federal statute. 3. Court may keep Lot Owner in jail indefinitely so long as it used criminal procedures to find him in contempt in the first place. 4. Court may keep Lot Owner in jail indefinitely so long as it holds periodic hearings to determine that the jail time remains coercive.

Answer 79

4. Court may keep Lot Owner in jail indefinitely so long as it holds periodic hearings to determine that the jail time remains coercive. This question is based on a real case where the Lot Owner made this claim. The court found that Lot Owner could communicate with others and get the job done, then later the court allowed Lot Owner our of jail for a period of 10 days, subject to the condition that he would return to jail in coercive contempt if he did not get the tires removed during that time.

Question 80

A court ordered a power drink company to pay $7,500 to a rival company because the power drink company failed to abide by the injunction requiring it to stop using a trade name confusingly similar to the rival's. Which of the following is true? 1. The $7,500 is only valid if it represents the damages the rival suffered because of the power drink company's violation of the injunction. 2. The $7,500 is valid if it represents either the rival's damages or the power drink company's profits because of violation of the injunction. 3. The $7,500 is only valid if it is within the statutory range of penalities established by the legislature for contempt. 4. The $7,500 is only valid if it represents an amount of money that will coerce the power drink company to abide by the injunction.

Answer 80

2. The $7,500 is valid if it represents either the rival's damages or the power drink company's profits because of violation of the injunction. This is civil compensatory contempt because it is paid to the party who obtained the injunction and not into the court. The amount of the payment may be either plaintiff's loss or defendant's gain (unjust enrichment).

Question 81

Witness refused to testify about her child's whereabouts to a grand jury. The court ordered her in jail until she agreed to testify. The grand jury has disbanded, but the prosecutor seeks an additional remedy against Witness because her failure to testify caused the grand jury to fail to issue an indictment for lack of sufficient evidence. Which of the following remedies is a court most likely to impose? 1. Summary contempt. 2. Criminal contempt. 3. Civil coercive contempt. 4. Civil compensatory contempt.

Answer 81

2. Criminal contempt.

Question 82

Which of the following constitutes a proper circumstance for the imposition of contempt? 1. A witness in a civil tort action refuses to answer a question after the judge orders her to do so. 2. A parent accidentally pays $5,000 too little in violation of a court's child-support order. 3. A corporation fails to install pollution-reduction equipment that would prevent statutory violations for which it has been fined by a court in the past. 4. A car dealership fails to produce a document requested in discovery because it would reveal wrongdoing that would aid the plaintiff's case.

Answer 82

1. A witness in a civil tort action refuses to answer a question after the judge orders her to do so.