Question

Assignment 4-1

Week One Multiple Choice & Short Answer

Total 40 points

BACKGROUND INFORMATION:

Comedian/actress Rosie O’Donnell was part of a breach of contract trial with Gruner & Jahr over the “Rosie” magazine. O’Donnell’s contract stated that she would hold the position of editorial director of the magazine, with control over the editorial process and editorial staff, subject only to the veto of the CEO of G&J. During trial, O’Donnell told the court that in the first run of the magazine she had full control, and that in 2002 her control was taken away. It was a bench trial, and the breach of contract case came down to the specific terms of the contract. In some cases, a verbal agreement can be integrated into the written contract, modifying it. Even though the CEO had the final say in this contract, variances could alter interpretations and outcomes.

Multiple Choice Questions (2 points each):

1. Remedies for breach of contract can be ___________ damages.

a. Only Legal (also known as money damages)

b. Only Equitable

c. Neither legal or equitable

d. Either legal and/or equitable

e. None of the above

2. ________________ damages are designed to put the plaintiff back into the same position that he would have been in had the contract been fully performed.

a. Compensatory

b. Liquidated

c. Consequential

d. Punitive

e. Nominal

3. Special, or ___________ damages, are foreseeable damages that arise from special facts and circumstances that are outside of the actual contract.

a. Compensatory

b. Liquidated

c. Consequential

d. Punitive

e. Nominal

4. Harry has contracted with Hal to purchase 5 tons of corn. Hal is unable to deliver. Harry wants to punish Hal and momentarily thinks about intentionally increasing his damages. He realizes that he will be under a duty to ____________ his damages, and purchases the corn elsewhere.

a. Liquidate

b. Rescind

c. Cover

d. Mitigate

e. None of the above

5. Steve contracts with Jonathan for the purchase of an antique diamond stickpin. Jonathan refuses to deliver the stickpin, even though Steven is prepared to pay the agreed upon price. Steve can go to court and ask for which equitable remedy ____________________.

a. Specific performance

b. Recission

c. Restitution

d. Reformation

e. An injunction

Short Answer (5 points each)

1. The courts sometimes will reform contracts when they determine that there are inconsistencies in the contract or that the contract does not reflect the actual agreement between the parties, even against the objections of one of the parties.

What are the legal concepts that allow a court to do this?

2. Parol Evidence Rule

A. Define the parol evidence rule.

B. Explain the eight (8) exceptions to the rule.

3. Before suing for breach of contract, what factors should be considered (list at least five (5)?

4. Remedies

A. What is a legal remedy?

B. Define each of the following legal remedies:

o Compensatory

o Consequential

o Punitive

o Nominal

o Liquidated

o Incidental

C. Provide an example of each of the following legal remedies:

o Compensatory

o Consequential

o Punitive

o Nominal

o Liquidated

o Incidental

5. Remedies

A. What is an equitable remedy?

B. Define and provide an example of each of the following equitable remedies:

o Recission

o Restitution

o Specific Performance

o Injunction

C. Provide an example of each of the following equitable remedies:

o Recission

o Restitution

o Specific Performance

o Injunction

6. UCC

A. What is the UCC?

B. Why is it important?

Answer 1

1.D

2.A

3.C

4.D

5.E