Chapter18 Breach of Contract

Chapter18 Breach of Contract - M ULTIPLE CHOICE QUESTIONS...

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MULTIPLE CHOICE QUESTIONS 1. Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company’s plant. If Even-Flo breaches the contract, Fiesta can a. do nothing but make a deal with .a different service provider. b. do nothing but temporarily suspend operations and wait. c. file a criminal complaint against Even-Flo. d. sue Even-Flo for damages. 2. Carol pays Dick $10,000 to design an ad campaign for Carol’s Coffee Stand chain. The next day, Dick tells Carol that he has accepted a job in New York and cannot design her campaign. Carol files a suit against Dick. As compensatory damages, Carol can recover a. $100,000. b. $10,000. c. $1,000. d. $0. 3. Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA may recover a. $17,000. b. $15,000. c. $2,000. d. $0. 4. Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam’s measure of damages is a. $1,500 only. b. $1,500 plus incidental damages.
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c. incidental damages only. d. $0. 5. Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover a. the contract price less costs of materials and labor. b. the contract price. c. the costs needed to complete construction. d. profits plus the costs incurred up to the time of the breach. 6. Hybrid Corporation enters into a contract with Insure Service, Inc.
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This note was uploaded on 05/18/2011 for the course BUSINESS 2041 taught by Professor Miller during the Fall '08 term at DeAnza College.

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Chapter18 Breach of Contract - M ULTIPLE CHOICE QUESTIONS...

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