Business Law 122 Exam 2026 Questions
and Answers Graded A+
dissolution - Correct answer-any event discused in operating agreement, consent of
all members, 90 days with no members, or issuance of courd order for dissolution.
member leave aka dissociation does not terminate
e. Even though he breached the contract, Rhett may not be liable for the full
difference between the contract price and the market value if Savannah could have
purchased a similar car from a third party for less than $17 000. - Correct answer-
Savannah agreed to buy a car from Rhett for $10 000. Savannah paid the price, but
Rhett refused to perform the contract after he discovered that the vehicle was really
worth $17 000. At the time that the contract was created, neither he nor Savannah
was aware of the vehicle's actual value. Which of the following statements is
TRUE? a. The court will likely award expectation damages based on the profit that
Rhett expected to receive under the contract.
b. The court will likely award specific performance because of the significant
difference between the contract price and the actual value of the car.
, c. Savannah cannot get expectation damages for $17 000 because she did not
expect to receive a car of that value when she entered into the contract.
d. Savannah will be entitled to receive a total of $7000 in expectation damages
because that is the profit that she should have received under the contract.
e. Even though he breached the contract, Rhett may not be liable for the full
difference between the contract price and the market value if Savannah could have
purchased a similar car from a third party for less than $17 000.
Damages in contract are usually forward-looking because the courts want to
protect the fact that promises are valuable only if they will be kept in the future. -
Correct answer-Which of the following statements is TRUE?
a. Damages in contract are always forward-looking.
b. Damages in contract are always backward-looking.
c. In deciding whether or not damages in contract should be forward-looking or
backward-looking, a court will be influenced by whether or not the defendant's
breach was deliberate.
d. Damages in contract are usually forward-looking because the courts want to
protect the fact that promises are valuable only if they will be kept in the future.
and Answers Graded A+
dissolution - Correct answer-any event discused in operating agreement, consent of
all members, 90 days with no members, or issuance of courd order for dissolution.
member leave aka dissociation does not terminate
e. Even though he breached the contract, Rhett may not be liable for the full
difference between the contract price and the market value if Savannah could have
purchased a similar car from a third party for less than $17 000. - Correct answer-
Savannah agreed to buy a car from Rhett for $10 000. Savannah paid the price, but
Rhett refused to perform the contract after he discovered that the vehicle was really
worth $17 000. At the time that the contract was created, neither he nor Savannah
was aware of the vehicle's actual value. Which of the following statements is
TRUE? a. The court will likely award expectation damages based on the profit that
Rhett expected to receive under the contract.
b. The court will likely award specific performance because of the significant
difference between the contract price and the actual value of the car.
, c. Savannah cannot get expectation damages for $17 000 because she did not
expect to receive a car of that value when she entered into the contract.
d. Savannah will be entitled to receive a total of $7000 in expectation damages
because that is the profit that she should have received under the contract.
e. Even though he breached the contract, Rhett may not be liable for the full
difference between the contract price and the market value if Savannah could have
purchased a similar car from a third party for less than $17 000.
Damages in contract are usually forward-looking because the courts want to
protect the fact that promises are valuable only if they will be kept in the future. -
Correct answer-Which of the following statements is TRUE?
a. Damages in contract are always forward-looking.
b. Damages in contract are always backward-looking.
c. In deciding whether or not damages in contract should be forward-looking or
backward-looking, a court will be influenced by whether or not the defendant's
breach was deliberate.
d. Damages in contract are usually forward-looking because the courts want to
protect the fact that promises are valuable only if they will be kept in the future.
