Page 1 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2 BUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
BUS LAW 1001
UNIT 2 – MILESTONE 2
1
Which of the following scenarios would likely result in an order for specific performance or an
injunction, rather than a monetary award?
A hospital hires a new CEO who signs a two-year employment contract. After six months, the
CEO quits, and the hospital sues her for breach of contract.
Joyce signs a contract to purchase her first home for $180,000 from Mei. Mei then gets a
better offer, and breaks her contract with Joyce. Joyce sues Mei for breach of contract.
A homeowner requests that a fencing company install a particular brand of vinyl fence. The
company ends up installing a different brand that looks and performs exactly the same. The
homeowner sues for breach of contract.
Yolanda's landscaping company orders a new riding mower that is supposed to be delivered
before Yolanda's next big job on Monday. The mower doesn't arrive until Friday, so Yolanda
loses out on that job. Yolanda sues the company that promised her the riding mower for
breach of contract.
RATIONALE Specific performance is awarded where monetary damages cannot compensate a non-
breaching party. Real estate is always unique, and, typically, nothing short of specific performance
can compensate for breach of a real estate sales contract.
CONCEPT Equitable Remedies: Specific Performance and Injunction
2
Which contract generally must be in writing under the Statute of Frauds?
Hilary hires a personal assistant to help with her catering business.
George loans his daughter $300 to buy a new bicycle.
Shara and Asher form a prenuptial agreement before they get married.
Colin hires a contractor to remove several trees from his property next month.
RATIONALE The only choice addressed by the Statute of Frauds as requiring a writing is a
prenuptial agreement which is a contract in consideration of marriage.
CONCEPT Statute of Frauds
3
Regarding fault, tort law is different from criminal law in that __________.
under tort law, a plaintiff may recover only if the defendant had a deliberate desire to do harm
under tort law, a tortfeasor may only be held liable if he or she did not observe all possible
precautions
under tort law, a plaintiff may recover even if the tortfeasor is not involved in wrongful conduct,
as in the case of strict liability for dangerous products.
under tort law, a plaintiff may only recover if a wrongful act has been committed by the
defendant
RATIONALE In certain types of torts, such as strict liability torts, the law has developed to impose
liability for dangerous products even where a wrongful act has not been committed.
CONCEPT Introduction to Tort Law
4
Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt
supplier. Before Juan ships the shirts, Cynthia calls him to inform him that she is going out of
business and no longer needs the shirts. Juan decides to resell the 100 shirts at public auction.
What further remedy does Juan have in this scenario?
Since Juan is reselling the shirts at public auction and they are not a perishable good, he must
notify
This study source Cynthia byof1827175
was downloaded the public sale and
from cliffsnotes.com allow her
on 01-08-2026 to bid
18:05:27 GMTif-06:00
she wishes.
BUS LAW 1001 UNIT 2 - MILESTONE 2 Page 1 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
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, Page 2 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2
If Cynthia becomes aware of the public auction, Juan may refuse toBUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
allow Cynthia to bid on the
shirts since she is in breach of contract.
If Juan sells the shirts at auction for more that the original contract price, he is obligated to
share the profits, less any incidental costs, with Cynthia.
Juan may sell the shirts at public auction without notifying Cynthia, since she is going out of
business.
RATIONALE Because Cynthia breached the contract, Juan may choose to sell the goods at public
auction, but he must notify Cynthia so that she may bid on them.
CONCEPT Seller's Remedies Under the Uniform Commercial Code
5
A store employee drops a box of oranges while stocking the produce section, and oranges roll all
over the floor. A customer steps on an orange and falls, injuring her arm. The customer sues the
store employee for negligence.
Assuming it is true, which of the following would represent a strong defense against the negligence
claim?
The customer was talking to her friend when the accident happened.
The customer ignored a barrier that the employee had set up around the produce section of
the store.
The employee had already partially cleaned up the oranges when the customer fell.
The customer has mounting debts and needs money to pay them off.
RATIONALE By ignoring a barrier set up for her safety, the customer was assuming the risk of injury,
and assumption of the risk is a strong defense.
CONCEPT Negligent Torts: Damages and Defenses
6
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a
seller's breach of contract.
In its sales contract, a maker of musical instruments gives buyers a maximum of two years to
raise any concerns relating to breach of contract.
The sales contract for a consumer electronics company excludes specific performance as a
remedy for non-delivery of items ordered by the buyer, but it allows for refunds.
The sales contract for a lumber mill that sells building materials includes a liquidated damages
clause for the amount of $50 million in the event of a breach of contract.
The sales contract for a swimming pool supply store warns buyers that in the event of a breach
of contract, only a single remedy is available, and additional (cumulative) remedies are
excluded.
RATIONALE Although liquidated damages clauses are allowed under the UCC, this is an example
that could be considered unconscionable due to the extreme unfairness that could result to a buyer
as a result of a breach.
CONCEPT Remedies in General Under the Uniform Commercial Code
7
A firefighter is injured by smoke inhalation while fighting an accidental fire at a local resident's house.
Is the homeowner liable for negligence if the firefighter sues?
No, because the homeowner had no duty of care to the firefighter.
Yes, but only if causation can be established.
No, because the firefighter was acting unreasonably by entering a burning home.
Yes, because the homeowner breached a duty of reasonable care to the firefighter.
RATIONALE To prove negligence, a plaintiff must show there was a duty of care towards the injured
person. There is not a duty of care towards the firefighter because it was not foreseeable that an
accidental fire will occur.
CONCEPT Negligent Torts: Liability
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 18:05:27 GMT -06:00
BUS LAW 1001 UNIT 2 - MILESTONE 2 Page 2 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
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BUS LAW 1001
UNIT 2 – MILESTONE 2
1
Which of the following scenarios would likely result in an order for specific performance or an
injunction, rather than a monetary award?
A hospital hires a new CEO who signs a two-year employment contract. After six months, the
CEO quits, and the hospital sues her for breach of contract.
Joyce signs a contract to purchase her first home for $180,000 from Mei. Mei then gets a
better offer, and breaks her contract with Joyce. Joyce sues Mei for breach of contract.
A homeowner requests that a fencing company install a particular brand of vinyl fence. The
company ends up installing a different brand that looks and performs exactly the same. The
homeowner sues for breach of contract.
Yolanda's landscaping company orders a new riding mower that is supposed to be delivered
before Yolanda's next big job on Monday. The mower doesn't arrive until Friday, so Yolanda
loses out on that job. Yolanda sues the company that promised her the riding mower for
breach of contract.
RATIONALE Specific performance is awarded where monetary damages cannot compensate a non-
breaching party. Real estate is always unique, and, typically, nothing short of specific performance
can compensate for breach of a real estate sales contract.
CONCEPT Equitable Remedies: Specific Performance and Injunction
2
Which contract generally must be in writing under the Statute of Frauds?
Hilary hires a personal assistant to help with her catering business.
George loans his daughter $300 to buy a new bicycle.
Shara and Asher form a prenuptial agreement before they get married.
Colin hires a contractor to remove several trees from his property next month.
RATIONALE The only choice addressed by the Statute of Frauds as requiring a writing is a
prenuptial agreement which is a contract in consideration of marriage.
CONCEPT Statute of Frauds
3
Regarding fault, tort law is different from criminal law in that __________.
under tort law, a plaintiff may recover only if the defendant had a deliberate desire to do harm
under tort law, a tortfeasor may only be held liable if he or she did not observe all possible
precautions
under tort law, a plaintiff may recover even if the tortfeasor is not involved in wrongful conduct,
as in the case of strict liability for dangerous products.
under tort law, a plaintiff may only recover if a wrongful act has been committed by the
defendant
RATIONALE In certain types of torts, such as strict liability torts, the law has developed to impose
liability for dangerous products even where a wrongful act has not been committed.
CONCEPT Introduction to Tort Law
4
Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt
supplier. Before Juan ships the shirts, Cynthia calls him to inform him that she is going out of
business and no longer needs the shirts. Juan decides to resell the 100 shirts at public auction.
What further remedy does Juan have in this scenario?
Since Juan is reselling the shirts at public auction and they are not a perishable good, he must
notify
This study source Cynthia byof1827175
was downloaded the public sale and
from cliffsnotes.com allow her
on 01-08-2026 to bid
18:05:27 GMTif-06:00
she wishes.
BUS LAW 1001 UNIT 2 - MILESTONE 2 Page 1 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
https://www.cliffsnotes.com//study-notes/27894538
, Page 2 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2
If Cynthia becomes aware of the public auction, Juan may refuse toBUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
allow Cynthia to bid on the
shirts since she is in breach of contract.
If Juan sells the shirts at auction for more that the original contract price, he is obligated to
share the profits, less any incidental costs, with Cynthia.
Juan may sell the shirts at public auction without notifying Cynthia, since she is going out of
business.
RATIONALE Because Cynthia breached the contract, Juan may choose to sell the goods at public
auction, but he must notify Cynthia so that she may bid on them.
CONCEPT Seller's Remedies Under the Uniform Commercial Code
5
A store employee drops a box of oranges while stocking the produce section, and oranges roll all
over the floor. A customer steps on an orange and falls, injuring her arm. The customer sues the
store employee for negligence.
Assuming it is true, which of the following would represent a strong defense against the negligence
claim?
The customer was talking to her friend when the accident happened.
The customer ignored a barrier that the employee had set up around the produce section of
the store.
The employee had already partially cleaned up the oranges when the customer fell.
The customer has mounting debts and needs money to pay them off.
RATIONALE By ignoring a barrier set up for her safety, the customer was assuming the risk of injury,
and assumption of the risk is a strong defense.
CONCEPT Negligent Torts: Damages and Defenses
6
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a
seller's breach of contract.
In its sales contract, a maker of musical instruments gives buyers a maximum of two years to
raise any concerns relating to breach of contract.
The sales contract for a consumer electronics company excludes specific performance as a
remedy for non-delivery of items ordered by the buyer, but it allows for refunds.
The sales contract for a lumber mill that sells building materials includes a liquidated damages
clause for the amount of $50 million in the event of a breach of contract.
The sales contract for a swimming pool supply store warns buyers that in the event of a breach
of contract, only a single remedy is available, and additional (cumulative) remedies are
excluded.
RATIONALE Although liquidated damages clauses are allowed under the UCC, this is an example
that could be considered unconscionable due to the extreme unfairness that could result to a buyer
as a result of a breach.
CONCEPT Remedies in General Under the Uniform Commercial Code
7
A firefighter is injured by smoke inhalation while fighting an accidental fire at a local resident's house.
Is the homeowner liable for negligence if the firefighter sues?
No, because the homeowner had no duty of care to the firefighter.
Yes, but only if causation can be established.
No, because the firefighter was acting unreasonably by entering a burning home.
Yes, because the homeowner breached a duty of reasonable care to the firefighter.
RATIONALE To prove negligence, a plaintiff must show there was a duty of care towards the injured
person. There is not a duty of care towards the firefighter because it was not foreseeable that an
accidental fire will occur.
CONCEPT Negligent Torts: Liability
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 18:05:27 GMT -06:00
BUS LAW 1001 UNIT 2 - MILESTONE 2 Page 2 of 6 BUS LAW 1001 UNIT 2 - MILESTONE 2.pdf
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