Chapter 1 Remedies 187
Practice Test
True/False Questions
Circle true or false:
1. T F Courts award the expectation interest more often than any other remedy.
3. T F In a case of promissory estoppel, a court is most likely to award liquidated damages.
5. T F Where one party has clearly breached, the injured party must mitigate damages.
Multiple-Choice Questions
7. Museum schedules a major fundraising dinner, devoted to a famous Botticelli picture, for September 15. Museum then hires Sue Ellen to restore the picture, her work to be done no later than September 14. Sue Ellen is late with the restoration, forcing the Museum to cancel the dinner and lose at least $500,000 in donations. Sue Ellen delivers the picture, in excellent condition, two weeks late. Museum sues.
(a) Museum will win.
(b) Museum will win if, when the parties made the deal, Sue Ellen knew the importance of the date.
(c) Museum will win provided that it was Sue Ellen’s fault she was late.
(d) Museum will win provided that it was not Sue Ellen’s fault she was late.
(e) Museum will lose.
(e) Quasi-contract.
9. Max has developed “Sky Juice,” a new sports power drink. He signs a contract with the Crushers, a professional hockey team, which allows Max to sell Sky Juice at all Crusher home games, from three booths located inside the stadium. The Crushers, however, run into financial trouble, and cancel their season. Max sues. His best remedy is going to be
(a) Expectation interest.
(b) Reliance interest.
(c) Restitution.
(d) Rescission.
(e) Injunction.
Short Answer Questions
11. The market price is relevant. The Beards are entitled to their expectation interest. They will get compensatory damages, representing the difference between the contract price and the market value of the house as it should have been built. If they can prove the value was $100,000 higher than the contract price, they get that sum. They are also entitled to the rental costs, which were consequential damages. S/E could foresee that the Beards would have to rent while waiting for the new house. Beard v. S/E joint Venture, 321 Md. 126,581 A.2d 1275, 1990 Md. LEXIS 174 (1990).
13. He should, and did, seek restitution. Expectation damages will be unavailable since Racicky is bankrupt. Specific performance is impossible because Racicky does not own the land. Reformation is irrelevant. Simon gets restitution, since he has conferred a benefit on Racicky and it would be unjust for the defendant to keep it. Racicky v. Simon, 831 P.2d 241, 1992 Wyo. LEXIS 60 (Wyo. 1992).
15. ETHICS It sued and obtained an injunction, based on a violation of the NFL's copyright in the broadcasts. The permanent injunction prohibited the bars from showing any blackedout games without written permission. NFL v. Rondor, Inc., 840 F. Supp. 1160, 1993 U.S. Dist. LEXIS 19599 (N.D. Ohio 1993).