BUL 3320 Final Exam Questions with
Correct Answers
What is the non-breaching party's obligation in the event of anticipatory repudiation?
- ANSWER-The non-breaching party can discharge at that point preventing any
further duties under contract.
What are your damages when there's a breach of a sales contract involving goods
normally governed by? - ANSWER-Uniform Commercial Code, not common law.
A contractor can recover the profits they would have made on a contract if the owner
breaches the contract before construction begins. (Think anticipatory repudiation.) If
Sam is supposed to start building a house for Lisa in a week and Lisa isn't going to
be following the contract by not allowing them on the property, pay them money etc.
Can Sam sue? - ANSWER-Sam can then sue at this point to recover damages of the
profits they would have made if the contract was fulfilled.
If an employer hires someone to work and their employee doesn't show up, what
damages can the employer recover for breaches of an employee contract? -
ANSWER-Cost to hire a new employee and the increase in salary for the
replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. - ANSWER-False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in most
instances. - ANSWER-True
T/F: Most courts do not favor nominal damages lawsuits such as $1. - ANSWER-
True
T/F: If an employer breaches their contract, the employee still owes a duty to find
substitute comparable employment. The employee can't wait a year and then decide
to sue for the whole year of damages. - ANSWER-True
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or impractical to
determine. Law
doesn't favorite liquidated damage provisions. - ANSWER-True
T/F: If the court finds out that liquidated damage provision amounts to a penalty it is
not enforceable. - ANSWER-True
Under what circumstances would remedy of precision be available?
Material breach of a contract
,Fraud
Duress/undue influence
Mistake - ANSWER-Mistake
T/F: Specific performance is a remedy available for the breach of any sale of
personal property or personal service contract. - ANSWER-False, land contracts are
the only situation you can get specific performance of a contract.
Injunction - ANSWER-requires a person not to do/ perform a certain act
T/F: If there is a clerical error in a contract, you can get reformation of the contract. -
ANSWER-True
T/F: The Federal Arbitration Act is not limited to disputes involving only federal law. -
ANSWER-True
Suppose a party can prove a contract related tort, the party could recover
compensation for personal injury, pain and suffering, emotional distress, but never
punitive damages. - ANSWER-False, in some instances you can recover punitive
damages if you can prove there's a contract related tort.
What is the tort of intentional interference with contractual relations? - ANSWER-
Arises when a third party induces a contracting party to breach the contract with
another party.
Ex. Alice (A) and Betty (B) have a contract. Charlie (C) tries to talk Alice (A) into not
performing their duties under the contract.
T/F: Most states permit a court to apply Covenant called the covenant of good faith
and fair dealing. - ANSWER-False, a few states do while most states do NOT do that
T/F: Bankruptcy judges are appointed for life. - ANSWER-False; appointed for 14
years
T/F: Chapter 7 is reorganization, and Chapter 11 is liquidation. - ANSWER-False for
both, but reverse is true
Trustees must be appointed in which of the following cases - ANSWER-7 and 13 but
not necessarily 11 years.
T/F: Chapter 13 is adjustment of debts of an individual with regular income. -
ANSWER-True
T/F: Bankruptcy courts are part of the federal court system, NOT the state court
system. - ANSWER-True
T/F: There is one bankruptcy court minimum for each federal jurisdiction and there
are 94 US districts so there are at least 94 courts. - ANSWER-True
, Individuals filing for bankruptcy, must receive counseling within how many days prior
to filing? - ANSWER-180
T/F: Can the prepetition counseling be provided by an individual debtor by their CPA
and then charge a reasonable fee? - ANSWER-False, the CPA can't do prepetition
counseling.
T/F: Before a debtor can receive a discharge, they must receive post-petition
counseling. - ANSWER-True
A voluntary petition can be filed in which chapters?
Involuntary petition can be filed in which chapter? - ANSWER-A voluntary petition
can be filed in chapter 7/ 11/ 13.
Involuntary petition can be filed in chapter 7/ 11 but not chapter 13.
T/F: An attorney must certify the accuracy of the information contained in a
bankruptcy petition and schedule under penalties of perjury. - ANSWER-True
If there is an involuntary petition filed, can a debtor challenge this? If they do, is a
trial held to determine whether an order for relief should be granted. - ANSWER-Yes,
yes
T/F: At the first meeting of the creditors, the bankruptcy judge does NOT engage in
questioning of the debtor under oath. - ANSWER-True
T/F: A debtor can have an attorney present at the first meeting of creditors. -
ANSWER-True
T/F: A trustee must be appointed in chapter 7/ 11/ 13 - ANSWER-False, not
appointed in chapter 11
T/F: A creditor must file proof of claim stating the amount of claim against the data in
a bankruptcy proceeding at the creditor wants to be recognized. - ANSWER-True
Once appointed, the trustee does not become the legal representative of the debtor,
they become the legal representative of the debtor's estate. - ANSWER-True
What actions would automatic stays in bankruptcy not suspend and would proceed?
- ANSWER-Match suspend alimony and child support cases; Dissolution of marriage
and child custody cases; Criminal actions against the debtor
What are debts that are not dischargeable in bankruptcy? - ANSWER-Claims for
causing willful or malicious injury to a person or property.
Claims arising from fraud, larceny, or embezzlement by the debtor while acting in a
fiduciary capacity.
Correct Answers
What is the non-breaching party's obligation in the event of anticipatory repudiation?
- ANSWER-The non-breaching party can discharge at that point preventing any
further duties under contract.
What are your damages when there's a breach of a sales contract involving goods
normally governed by? - ANSWER-Uniform Commercial Code, not common law.
A contractor can recover the profits they would have made on a contract if the owner
breaches the contract before construction begins. (Think anticipatory repudiation.) If
Sam is supposed to start building a house for Lisa in a week and Lisa isn't going to
be following the contract by not allowing them on the property, pay them money etc.
Can Sam sue? - ANSWER-Sam can then sue at this point to recover damages of the
profits they would have made if the contract was fulfilled.
If an employer hires someone to work and their employee doesn't show up, what
damages can the employer recover for breaches of an employee contract? -
ANSWER-Cost to hire a new employee and the increase in salary for the
replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. - ANSWER-False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in most
instances. - ANSWER-True
T/F: Most courts do not favor nominal damages lawsuits such as $1. - ANSWER-
True
T/F: If an employer breaches their contract, the employee still owes a duty to find
substitute comparable employment. The employee can't wait a year and then decide
to sue for the whole year of damages. - ANSWER-True
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or impractical to
determine. Law
doesn't favorite liquidated damage provisions. - ANSWER-True
T/F: If the court finds out that liquidated damage provision amounts to a penalty it is
not enforceable. - ANSWER-True
Under what circumstances would remedy of precision be available?
Material breach of a contract
,Fraud
Duress/undue influence
Mistake - ANSWER-Mistake
T/F: Specific performance is a remedy available for the breach of any sale of
personal property or personal service contract. - ANSWER-False, land contracts are
the only situation you can get specific performance of a contract.
Injunction - ANSWER-requires a person not to do/ perform a certain act
T/F: If there is a clerical error in a contract, you can get reformation of the contract. -
ANSWER-True
T/F: The Federal Arbitration Act is not limited to disputes involving only federal law. -
ANSWER-True
Suppose a party can prove a contract related tort, the party could recover
compensation for personal injury, pain and suffering, emotional distress, but never
punitive damages. - ANSWER-False, in some instances you can recover punitive
damages if you can prove there's a contract related tort.
What is the tort of intentional interference with contractual relations? - ANSWER-
Arises when a third party induces a contracting party to breach the contract with
another party.
Ex. Alice (A) and Betty (B) have a contract. Charlie (C) tries to talk Alice (A) into not
performing their duties under the contract.
T/F: Most states permit a court to apply Covenant called the covenant of good faith
and fair dealing. - ANSWER-False, a few states do while most states do NOT do that
T/F: Bankruptcy judges are appointed for life. - ANSWER-False; appointed for 14
years
T/F: Chapter 7 is reorganization, and Chapter 11 is liquidation. - ANSWER-False for
both, but reverse is true
Trustees must be appointed in which of the following cases - ANSWER-7 and 13 but
not necessarily 11 years.
T/F: Chapter 13 is adjustment of debts of an individual with regular income. -
ANSWER-True
T/F: Bankruptcy courts are part of the federal court system, NOT the state court
system. - ANSWER-True
T/F: There is one bankruptcy court minimum for each federal jurisdiction and there
are 94 US districts so there are at least 94 courts. - ANSWER-True
, Individuals filing for bankruptcy, must receive counseling within how many days prior
to filing? - ANSWER-180
T/F: Can the prepetition counseling be provided by an individual debtor by their CPA
and then charge a reasonable fee? - ANSWER-False, the CPA can't do prepetition
counseling.
T/F: Before a debtor can receive a discharge, they must receive post-petition
counseling. - ANSWER-True
A voluntary petition can be filed in which chapters?
Involuntary petition can be filed in which chapter? - ANSWER-A voluntary petition
can be filed in chapter 7/ 11/ 13.
Involuntary petition can be filed in chapter 7/ 11 but not chapter 13.
T/F: An attorney must certify the accuracy of the information contained in a
bankruptcy petition and schedule under penalties of perjury. - ANSWER-True
If there is an involuntary petition filed, can a debtor challenge this? If they do, is a
trial held to determine whether an order for relief should be granted. - ANSWER-Yes,
yes
T/F: At the first meeting of the creditors, the bankruptcy judge does NOT engage in
questioning of the debtor under oath. - ANSWER-True
T/F: A debtor can have an attorney present at the first meeting of creditors. -
ANSWER-True
T/F: A trustee must be appointed in chapter 7/ 11/ 13 - ANSWER-False, not
appointed in chapter 11
T/F: A creditor must file proof of claim stating the amount of claim against the data in
a bankruptcy proceeding at the creditor wants to be recognized. - ANSWER-True
Once appointed, the trustee does not become the legal representative of the debtor,
they become the legal representative of the debtor's estate. - ANSWER-True
What actions would automatic stays in bankruptcy not suspend and would proceed?
- ANSWER-Match suspend alimony and child support cases; Dissolution of marriage
and child custody cases; Criminal actions against the debtor
What are debts that are not dischargeable in bankruptcy? - ANSWER-Claims for
causing willful or malicious injury to a person or property.
Claims arising from fraud, larceny, or embezzlement by the debtor while acting in a
fiduciary capacity.
