Remedies

Before the pro football season began, Fan entered into a valid written contract with Broker to purchase 4 tickets to the Super Bowl for $1,000 each. The contract required that the tickets be located in the Premium Reserved Seating section and delivered to and paid for by Fan one week before the date of the Super Bowl game. Fan, in turn, contracted to sell three of the tickets to other individuals for $1,100 each. Fan booked a non-refundable flight to Super Bowl City and a non-refundable hotel room deposit for the two days he intended to be in Super Bowl City for the game. Two teams, the Protons and Neutrons, made it through the regular season and playoffs undefeated and were to play each other in the Super Bowl. Ticket prices skyrocketed. Broker repudiated the contract with Fan and sold the four Premium Reserved Seating tickets to a third party for $2,500 each. Fan had an opportunity to purchase four tickets in the General Admission section for $1,000 each but declined to do so, and instead, stayed home to watch the game on TV. Fan sued Broker for breach of contract. What is the measure of damages, if any, that Fan can recover against Broker? A. $0 B. $300 C. $300 + flight and hotel D. $6000

A. $0 General damages would be measured by the difference between the contract price of $1000 and the market value of $2500, or $1500 x 4 tickets = $6000. However, Fan can't recover for damages that were avoidable. He had a duty to make reasonable efforts to avoid or mitigate the loss of tickets after the harm. He had the ability to mitigate the harm by purchasing the general admission tickets for $1000 and could have attended the game.

A music promoter planned to open a discotheque and bar on the outskirts of town. He hired a builder to build it, with a completion date of September 15. Although the promoter was very optimistic that the disco would be a big success, its profitability could not be determined with certainty. First year profits were estimated to be about $1,000 per day. To encourage the builder to work in a timely manner, the contract included a liquidated damages clause, providing that the builder would pay the promoter $10,000 per day for each day the contract ran over its completion date. The builder's work progressed smoothly and would have been finished on time, except that the builder failed to place in a timely manner his order for the disco's specially manufactured dance floor lighting. Consequently, the work was not completed until October 15. The promoter sued the builder for breach of contract. The builder called a witness who testified that the disco would have received $30,000 in income during that 30-day period and would have expended $20,000, leaving a profit of $10,000. How much should the builder be required to pay to the promoter in damages? A. $10,000, representing the disco's lost profits B. $30,000 representing the disco's lost income C. $300,000 representing damages provided in the contract D. $310,000 representing damages provided in the contract + lost profts.

A. $10,000, representing the disco's lost profits The promoter will be able to recover $10,000, the disco's lost profits for the 30-day period. The purpose of contract damages is to put the nonbreaching party into as good a position as he would have been in had the breaching party fully performed. This would be represented here by the disco's lost profits, which is income ($30,000) - expenses ($20,000) = $10,000.

Father was ordered to pay $325 per month in child support for his 12-year-old daughter until the age of 18. The amount of support was calculated based on father's income. Five years later, father is laid off from his job and is earning no income. Which of the following is true? A. Father can seek modification of the support based on changed factual circumstances B. Father can seek termination of the support order based on changed factual circumstances. C. Father can seek modification of the support order based on his good faith compliance with a substantial part of the order. D. Father can seek termination of the support order based on his good faith compliance with a substantial part of the order.

A. Father can seek modification of the support based on changed factual circumstances A defendant may seek modification of an injunction, which is a continuing, prospective remedy, when there are significant changed circumstances of fact or law.

The State of Texas was found to have violated federal Medicaid law by failing to provide adequate medical and dental care to indigent children. The parties enter a consent decree by which the state agrees to provide adequate health care for indigent children. Ten years later, the state moves to terminate or modify the consent decree arguing that it has been complying with the federal Medicaid law, especially in the urban areas. The court does not find any material difference in fact from the time of the original complaint. What is the likely result of the state's motion? A. No modification because there aren't changed circumstances B. Termination because of federalism, returning democratic accountibility to the state. C. Termination of the provisions of the decree regarding urban areas. D. No relief granted because a court can't modify or terminate a consent decree.

A. No modification because there aren't changed circumstances Changed circumstances are required for modification of an injunction or termination under the Horne test, but the court found no changed circumstances here.

Tenant abruptly terminates a one-year apartment lease after four months when they have to move home to care for their sick parent. Landlord leaves the apartment vacant, and gets no inquiries from new tenants seeking a one-year lease apartment. Landlord makes no efforts to advertise the lease or seek a month-to-month tenant. If Landlord sues for the rent owed from the remaining eight months on the lease, can they recover? A. No, because there were no reasonable efforts to avoid the loss B. No because damages are speculative C. Yes ebcause these are general damages D. Yes because damages aren't avoidable

A. No, because there were no reasonable efforts to avoid the loss Plaintiff can't recover for damages they could have reasonably avoided. Landlord could've made reasonable efforts to lease the apartment partially through advertisement or month-to-month leases.

A builder contracted to build a house for owner. Terms of the contract provided that the builder would receive the contract price when the building was fully completed. Just when the builder was within a day or two of completing one-half of the structure, a tornado struck the area and demolished the building. What is the builder entitled to recover from owner under the contract? A. Nothing B. 1/2 of the contract price C. 1/2 of the fair market value of what remains of the house D. Cost of materials and reasonable labor costs

A. Nothing No recovery "under the contract" because there is no breach of the contract by Owen. Builder bore the risk of loss prior to completion. Without a loss caused by defendant's violation of the law, there is no right to a remedy.

A writer contracted with a literary agent to obtain a publisher for his book. The parties' written agreement provided that the agent would receive 20% of what the writer earned from each copy of the book sold. The agreement also provided that the publisher procured by the agent would pay the writer an advance against royalties of at least $10,000. The agent found a willing publisher who entered into a written contract with the writer providing for the standard royalty amount -$10,000 (publisher promised advance). The writer insisted on liquidated damages clause of $50,000 if the publisher breached the contract. Although the writer was unsure what his actual damages would be, he thought he could make $50,000 in royalties. The writer and the publisher signed the contract, and the publisher paid the writer $10,000 per their agreement. A few weeks later, the publisher notified the writer that, due to unexpected financial constraints, it was no longer possible for it to publish the book. The publisher requested that the writer return the $10,000 but the writer refused, so the publisher filed suit. The agent intervened in the suit, demanding the $10,000 from the writer as her 20% share of the expected royalties. Regarding the $10,000, what are the parties contractually entitled to? A. The writer is entitled to keep the $10,000 because the liquidated damages clause is reasonable B. The publisher is entitled to get the $10,000 returned because its contractual duties were discharged by impossibility. C. The agent is entitled to get the $10,000 because she performed her part of the contract by finding a publisher. D. The writer is entitled to keep $8,000 and the agent is entitled to get $2,000, because the liquidated damages clause was reasonable and the agent is entitled to 20% of whatever the writer gets from the deal.

A. The writer is entitled to keep the $10,000 because the liquidated damages clause is reasonable. The writer is entitled to keep the $10,000 as liquidated damages. A liquidated damages clause is enforceable if: (1) damages are difficult to ascertain at the time of the making of the contract, and (2) the damages are a reasonable forecast of compensatory damages. The test for reasonableness is a comparison between the amount of damages probable at the time of contract formation and the liquidated damages figure. The damages were difficult to determine at contract formation, but $50,000 appears to be a reasonable forecast of damages by the writer given the amount of the advance. Writer is contractually entitled to keep the $10,000 as part of his liquidated damages.

In the "Flipping the Bird" video, is the judge's sanction, in response to the defendant making an obscene hand gesture, a valid contempt remedy? A. Yes, as a valid summary contempt B. No, it's an invalid summary contempt C. Yes, as a valid criminal contempt D. No, it's an invalid criminal contempt.

A. Yes, as a valid summary contempt. Summary contempt is an exception to the usual procedural safeguards required for contempt. It is available where the contempt conduct occurs in the court's presence and immediate action can be taken. This is a valid summary contempt because the court witnessed the conduct which is in contempt of court rules and respect for the court's orders.

Martin Armstrong was arrested and charged criminally and civilly with a billion-dollar fraud scheme regarding gold bars and coins. Armstrong, a corporate officer, refuses to fully comply with 4 valid turnover orders, under which he has been compelled to return to a court-appointed receiver corporate records and assets (including gold bars, coins, and a home computer) totaling approximately $16 million. He was ordered as part of discovery to produce all assets and records linked to the scheme. He says he doesn't have anything else to produce. The court and a receiver find that as a matter of fact, Armstrong can produce or identify the location of the items. The court held him in contempt and ordered him to jail until he produced the assets as ordered. Armstrong has served 7 years in jail. A conviction on all charges would have resulted in a sentence of 6.5 to 8 years. Is this a valid contempt remedy? A. Yes, as civil coercive contempt. B. Yes, as criminal contempt. C. No, as contempt isn't an available remedy here. D. Yes, as civil compensatory contempt.

A. Yes, as civil coercive contempt. Defendant is jailed until he complies with the order. The goal is coercive, the time is conditional, and the defendant holds the keys to his own cell and can get out of jail a soon as he complies.

Homeowner discovers that the builder for their new home negligently left some open wiring within an internal wall. Due to the nature of the construction, it is not possible to repair or remove the wiring without significant risk to the entire house. Homeowner sues the builder for the increased risk of personal harm and property damage should the wiring catch fire in the future. An expert testifies that there is about a twenty-percent risk that such damage will occur in the future. Will the homeowner recover the damages? A. Yes, if the court uses the probablistic recovery approach to certainty B. Yes, if the court uses the more likely than not approach to certainty. C. No, because damages are avoidable D. No because the damages aren't foreseeable

A. Yes, if the court uses the probablistic recovery approach to certainty

Howard negligently causes a car accident with Carol's car. Carol is ejected from the car due to the impact because she is not wearing her seat belt since she is nine months pregnant. She is saved from injury by her imported Swedish imitation down coat, but lands on a burning cigarette which ignites the coat. Carol sues Howard for the loss of the $4000 coat. Which of the following arguments can Howard successfully make? A. Carol can't recover for consequential damages that are avoidable and specultaive. B. Carol can't recover for consequential damages that are avoidable and remote. C. Carol can't recover for consequential damages that are speculative and remote D. Carol can't recover for consequential damages that are remote.

B. Carol can't recover for consequential damages that are avoidable and remote.

Betty, who was moving to Idaho from a distant state, entered into a valid written contract with Sam for the purchase of Sam's home. The closing date of the deal was April 15. However, under the terms of the contract, Betty had the right to move her household goods onto the property and store them in the basement on March 31. The contract also contained a liquidated damages clause that required a payment of $100 to Betty for each day after March 31 that the basement was not available to accommodate Betty's goods. On March 31, the basement was not available to Betty, so she was required to rent a storage locker to store her household goods at a cost of $150 per day. On April 15, Sam informed Betty that he had decided not to go through with the contract to sell the house. Betty sued Sam for specific performance, for liquidated damages, and for the difference between the liquidated damages and the daily cost of the storage locker. How would the Court be likely to rule on Betty's claims against Sam for specific performance and damages? A. Grant specific performance B. Grant specific performance and liquidated damages C. Grant liquidated damages and the costs of storage D. Grant specific performance and the cost of storage.

B. Grant specific performance and liquidated damages There are 2 losses here: the lost contract for the sale of the house, and the lost contract for the two week basement rental. Specific performance will be awarded for the sale of the house because land is unique. Court would award liquidated damages for the loss of the basement storage because it's a reasonable liquidated damages clause. It was in proportion to the actual damages, the liquidated amount was $100/day and the actual loss was $150/day. Betty can't recover the additional costs of storage. She is essentially asking to recover both liquidated and actual damages, which is never permitted.

The professional women's softball team refused to play for its parent corporation after the company used discriminatory tactics to promote the new softball league. The team reacted strongly to the company's sexist policies and began to picket the fields, assault league employees and patrons entering the field, and destroy company property. The company brought a tort action against the team, and the court ordered the women's team to stop all trespasses, assaults, and destruction of property. The team failed to follow the court's order, and sixty days later, the court conducted a hearing under which it required proof of violations of the order to be proven beyond a reasonable doubt. It ordered the team to pay $60,000 for past violations of the injunction, and announced that future violations of the order would be assessed a fine of $10,000 per assault. A. Valid criminal contempt because the court required proof beyond a reasonable doubt. B. Invalid criminal contempt because the court did not utilize the required criminal procedural safeguards. C. Valid civil coercive contempt because the court announced future fines only that could be avoided by the defendants. D. Invalid civil coercive contempt because the court failed to conduct the required hearing.

B. Invalid criminal contempt because the court did not utilize the required criminal procedural safeguards. B Correct, because the court attempted two criminal contempt fines to punish the defendants for past acts. The assessment of a per assault fine when collected from defendants after the occurrence of the act becomes fixed and unavoidable and is criminal contempt. The Court's prior announcement of the remedy does not save the contempt from being a fixed penalty for past behavior.

McGwire is a sailor on a merchant marine vessel, "The Cardinal." While on shore leave in Okinawa, Japan, he gets into a dispute with Sousa who is the greatest baseball hitter of all time. The dispute erupts into physical violence, and Sousa suffers serious injuries. MLB Steamship Company, the owner of The Cardinal and McGwire's employer, files suit seeking a declaration that it is not vicariously liable as an employer for Sousa's injuries. Is MLB entitled to declaratory relief? A. Yes because it would serve a useful purpose B. No because of procedural fencing C. No because declaratory judgments aren't permitted in tort D. Yes because it would terminate the uncertainty

B. No because of procedural fencing DJ isn't an appropriate use of the court's discretion where the company is trying to avoid the plaintiff's choice of forum, bypass the statute of limitations, and control litigation decisions usually left to the plaintiff.

An employee is in a rush to get home from her job at a retail store because of the threatening snow storm. In her haste, she does not turn off her computer register overnight. A plug on the register malfunctions, the computer ignites, and the fire spreads to the surrounding store inventory of fine stationary valued at $26,000. The store sues the manufacturer of the computer part for breach of warranty seeking its profits lost from the burnt paper. Will the store be able to recover? A. Yes because the damages were foreseeable B. No because the damages weren't foreseeable C. No because the damages were avoidable D. Yes because the damages were consequential

B. No because the damages weren't foreseeable It isn't foreseeable to the part manufacturer that it would be liable for the consequential damages of lost business profits from a malfunctioning part.

A firm contracted with a municipality to repair a drawbridge and began work on February 1. The contract provided that the firm would be paid an additional $1,000 for each day the repair was completed before the April 1 completion deadline. On March 14, an unusual gear on the bridge broke. On that same day, the firm contracted with a supplier of the only available replacement gear for a March 15 delivery to the bridge site. The supplier did not know about the early-completion incentive-pay provision in the firm's contract. The supplier misdirected the delivery of the gear, and the firm did not receive it until March 20. The work on the bridge was completed on March 21. But for the late delivery of the gear, the firm would have completed the bridge repair on March 16. In an action against the supplier for breach of contract, will the firm be permitted to recover as part of its damages, the additional $5,000 early-completion incentive pay it would have received from the municipality but for the supplier's breach? A. No, because the supplier didn't expressly agree to be responsible for such damages B. No because the supplier didn't and had no reason to know about the early-completion incentive-pay provision. C. Yes because the supplier is liable for all damages flowing directly from its breach D. Yes because by the nature of its contract with the firm, the supplier should've known that time was of the essence.

B. No because the supplier didn't and had no reason to know about the early-completion incentive-pay provision. Supplier is liable for all damages flowing directly from the harm, both general and consequential damages. However, damages may be limited by foreseeability, speculativeness, or avoidabilty.

A new locally owned bookstore is delayed several months in opening because the book publisher fails to send the inventory on time as agreed in the purchasing contract. The bookstore misses the holiday shopping season, and opens four months later in March. Bookstore sues publisher for the consequential damages of the lost profits from the four month delayed opening. What is the likely result? A. No recovery because damages were avoidable B. No recovery because damages are speculative C. Recovery because damages were foreseeable D. Recovery because secondary to the primary loss

B. No recovery because damages are speculative It is uncertain whether the new business would have earned any profits, and also uncertain as to what amount those profits might have been.

In a divorce case, the court awards spousal support and orders the husband to pay $500 per month. After months of the husband not paying the support, the court holds a hearing and takes evidence confirming husband's ability, but failure to pay the support. The court orders husband to pay the support arrearage of $4000 within 30 days or go to jail for up to six months. Is this a valid contempt remedy? A. yes, as a valid criminal contempt. B. No, as an invalid attempt at criminal contempt. C. Yes, as a valid coercive contempt. D. No, as an invalid attempt at civil coercive contempt.

B. No, as an invalid attempt at criminal contempt. This is criminal contempt because it is a fixed time of "up to 6 months" that can't be avoided or purged once the time has passed. As criminal contempt, it requires full criminal procedural safeguards, but only received a hearing.

In a lawsuit regarding an RV accident caused allegedly by a defective tire manufactured by Goodyear Tire, plaintiffs learned after settlement of the case that Goodyear's Akron attorneys failed to disclose a key relevant document showing testing that revealed that this tire had problems. The court concluded that the attorneys had engaged in widespread discovery misconduct and sanctioned them in the amount of $2.7 million. This amount represented all attorney's fees on the case after the defendant's first discovery response when it failed to disclose the highly relevant document. The Goodyear attorneys argued that additional procedural protections were required before the court could award such punitive sanctions. Is the contempt remedy valid? A. Yes, as civil compensatory contempt to remedy the loss caused. B. No, because civil compensatory contempt is measured closely by the loss caused by the misconduct. C. Yes, as criminal contempt to punish the attorneys. D. No, as Rule 11 sanctions for discovery can't issue after close of a case.

B. No, because civil compensatory contempt is measured closely by the loss caused by the misconduct. Civil compensatory contempt would be a good option here, but it must be measured and calibrated only to the loss caused by the misconduct. Here, the award of most all plaintiff's attorney fees is not closely calibrated to that loss.

A city has been swamped with protesters from a Save the Alligators campaign. A tidal wave of protesters has caused damage to the town buildings and property and blocked traffic for miles. Yesterday, the protesters got out of hand and assaulted some of the local fishermen during a particularly violent protest. The city police would like to obtain a temporary restraining order to stop the protest scheduled for today. The police file a complaint with the court, and make no attempts to contact the protesters prior to the ex parte hearing. Will the court issue the requested temporary injunction? A. No, because there is no immediate harm threatened. B. No, because there were no efforts to notify the Defendants. C. Yes, because actual notice to the defendant isn't required. D. Yes, because ex parte injunctions are authorized by the court.

B. No, because there were no efforts to notify the Defendants. FRCP 65 requires a party requesting TRO to make efforts to notify the adverse party of the request for TRO. If efforts are unsuccessful, the rule allows the court to issue a TRO ex parte if the reasons for the lack of notice are explained.

Lego Builders wanted to compete for a bid to build the new city hall in town. In its haste to get the job, Lego quickly estimated the cost of a general contract bid. It then began receiving sub-contract bids. The lowest bid was made by Bionicle Builders for $180,000, which was $25,000 less than the next lowest bid. Based upon this low bid, Lego submitted its general bid to the City Council. Lego's general bid was $20,000 lower than the City Council originally anticipated, due to the low sub-bid from Bionicle. The City Council accepted Lego's bid. After the acceptance, Bionicle informed Lego that there had been a mistake in computing the sub-bid, and that the correct amount was $220,000. Lego was unaware of this mistake. In a suit for rescission of the contract with Lego, Bionicle should: A. Not suceed because the mistake was made before the bid was accepted B. Not suceed unless Lego actually knew or should have known of the mistake C. Suceed because the mistake was bilateral D. Suceed because this was a unilateral mistake

B. Not suceed unless Lego actually knew or should have known of the mistake In order for a unilateral mistake to be the basis for rescission, that mistake must be known or should have been known to the other side. The math error was Bionicle's unilateral mistake, but it wasn't known to Lego. The fact that Bionicle's bid was $25,000 lower than the other bids of $200,000 is insufficient to establish that Lego should have known of the mistake.

Brittany Spears sued eight international insurance companies to recover $10 million in damages for their refusal to pay for actual losses she sustained when her European tour was canceled because of a knee injury. Spears paid over $1.3 million in insurance premiums for "contingency insurance" customary in the entertainment industry to cover losses associated with postponement or cancellation of performances. As part of the insurance process, Spears underwent a medical examination by a doctor who found her in sound health and fit condition. However, at the time of the examination, Spears failed to answer a question on a medical form regarding prior injuries, and so did not note a minor orthopedic surgery on her knee five years before from which she had fully recovered. What result in Brittany's suit? A. Damages of $10 million to Spears B. Rescission of the contract due to unilateral mistake and $1.3 million to Spears C. Reformation of the contract due to mistake and $10 million to Spears D. Rescission of the contract and restitution to the companies for the additional costs of insuring an injured singer

B. Rescission of the contract due to unilateral mistake and $1.3 million to Spears Unilateral mistake of company's thinking Spears is healthy based on questionnaire is known by Spears who left question blank; and return parties to original position, here restoring to Spears the premiums paid.

An owner of property held title in fee simple. For consideration of $5,000, owner gave buyer a written, assignable option to purchase the property for $300,000. For consideration of $10,000, buyer then gave an option to purchaser to buy the property for $325,000. Purchaser exercised her option, and buyer then exercised his option. Buyer paid the agreed price of $300,000 and took title to the property from owner. Purchaser then refused to finalize the purchase. Buyer brings an appropriate action against purchaser for specific performance or alternatively for damages. What relief will buyer receive? A. Damages of $25,000 B. Specific Performance C. Damages of $15,000 D. Damages of $300,000

B. Specific Performance Specific performance when land because its unique

Miller owns an apple orchard where she built a plant to press and bottle apple cider. The press produces apple mash which washes into the river. The unsightly view and smell of the apple mash causes a nuisance to a neighboring country inn, whose guests are annoyed and disgusted by the not-so-scenic view. For six months, Miller has obeyed the terms of a permanent injunction which ordered her to conduct an expensive clean up of the river and banned any further dumping of apple mash into the river. She completed the clean up, and resumed her usual farming operations. Miller now seeks termination of the injunction. What is the likely result? A. Termination because Miller has satisfied the terms of the order B. Termination because she has substantially complied with the decree C. Termination because the object of the original decree has been achived D. Termination because of changed circumstances

B. Termination because she has substantially complied with the decree Miller has completed the clean up terms of the injunction, and in good faith complied with the order for six months and eliminated the harm to the extent practicable by the clean up and altering her dumping.

Martha Stewart developed a new line of instant dinners called "Dinner in 6 to 10." Her special process creates a 4-course gourmet dinner made to her impeccable standards after just 6 to 10 minutes in the oven. In the first twelve months, the dinners made over $120,000 in profits. Recently, two associates of Stewart's who helped invent the new dinners left to start their own competing business. The former associates designed their own cheaper dinners and began to compete with "Dinner in 6 to 10." During their first 6 months of sales, the competing dinners have grossed over $80,000 in profits. Martha sues the associates for stealing her trade secret and the judge awards her $80,000 in damages. On appeal, what is the best policy argument the defendants can make to challenge the damages award? A. The award violates principles of corrective justice. B. The award goes beyond the rightful position. C. The award creates economic waste. D. the award violates principles of equity.

B. The award goes beyond the rightful position.

Martha Stewart developed a new line of instant dinners called "Dinner in 6 to 10." Her special process creates a 4-course gourmet dinner made to her impeccable standards after just 6 to 10 minutes in the oven. In the first year, the dinners made over $120,000 in profits. Recently, two associates of Stewart's who helped invent the new dinners left to start their own competing business. The former associates designed their own cheaper dinners and began to compete with "Dinner in 6 to 10." During their first 6 months of sales, the competing dinners have grossed over $80,000 in profits. Martha sues the associates for stealing her trade secret and the judge awards her $80,000 in damages. On appeal, what is the best policy argument the defendants can make to challenge the damages award? A. The award violates principles of corrective justice. B. The award goes beyond the rightful position. C. The award creates economic waste. D. the award violates principles of equity.

B. The award goes beyond the rightful position. Martha has gotten more than her rightful position of her actual loss. Her sales pre harm were $10,000 per month ($120/12 = $10k per month) and the selling of stolen goods for 6 months should attribute 10/month = 60,000 as her loss. Giving her 80k is more than her loss and gives a windfall.

An aspiring high school singer was rushing to class when a bully threw a smoothie in her face, causing the student to slip and fall. The singer scraped the side of her face on a locker, and broke her nose. Because the nose impacts the sound quality of a singer's voice, she underwent specialized medical treatment in order to repair her nose and retain her diva voice. The singer was quite hysterical about the damage to her appearance, and her emotional anxiety caused her boyfriend to ignore her. Can the student sue for all of the consequential damages from the incident? A. Yes because they are typical losses expected B. Yes because they are all foreseeable C. No because some were avoidable D. No because some are speculative

B. Yes because they are all foreseeable The consequential losses of medical expenses, loss of society from the boyfriend, and emotional distress are all foreseeable to the defendant. The student is an eggshell plaintiff where the potential extent of the damage due to the singing voice and hysterics was greater extent, though of the same type foreseeably expected.

Susan McDougal is called as a witness in the Whitewater trial alleging violations of the law from improper business transactions surrounding some real estate speculation by Bill and Hillary Clinton. McDougal, a friend of the Clintons, refuses to testify at trial. The court jails McDougal until she testifies. She remains in jail for two years until the case is dismissed for lack of merit. Is this a valid contempt remedy? A. Yes, as civil compensatory contempt B. Yes, as civil coercive contempt C. Yes, as criminal contempt D. Yes, as summary contempt

B. Yes, as civil coercive contempt The sanction here is conditional, as it stops when the witness testifies, and it is avoidable as she can be released as soon as she testifies. Its goal is to force or coerce the witness into testifying. The fact that the remedy is jail time does not make it criminal, as imprisonment can be a sanction for either criminal or civil contempt.

President Bill Clinton is sued by Paula Jones for sexual harassment. A court discovery order early in the case expressly defines the term "sexual relations" to include any intimate, physical contact. The judge attends the President's deposition to protect national security interests and referee any issues that might result in this unusual deposition of a sitting president. In his deposition, the President says he did not have sexual relations with Monica Lewinsky. Later, on television, the President admits he had "inappropriate relationship" with Lewinsky. Plaintiff's attorneys bring a motion, and the judge orders a contempt remedy against Clinton. The judge issues an order awarding a contempt remedy, and agrees to hold a hearing on her decision if the President so requests. The court awards $90,000, the costs of plaintiff's attorney's fees in bringing the contempt motion plus the costs of the judge attending the deposition. The judge refers lawyer Clinton to the Arkansas Bar for the ethical violation of Model Rule 8.4 of "engaging in dishonesty, fraud or deceit or conduct prejudicial to the administration of justice." Is this a valid contempt remedy? A. Yes, as civil coercive contempt. B. Yes, as civil compensatory contempt. C. Yes, as criminal contempt. D. No, as contempt isn't an available remedy.

B. Yes, as civil compensatory contempt. The sanction is monetary, and is calibrated to the loss caused by the contempt of the plaintiff's attorney's fees from bringing the motion and the judge's costs of attending the deposition. The bar referral isn't part of the contempt remedy, but part of the judge's ethical obligation to report dishonesty to the bar.

A well-established paper mill and a logging company signed a written contract in which the mill agreed to buy from the company all the logs the mill would need for one year. The company was unable to keep up with the mill's needs, and its log deliveries fell short by 10% to 15% in each of the four quarters of the year. The mill paid the company on time for all delivered logs. The mill paid an attorney $2000 for advice concerning its options in enforcing the contract. It paid a broker a reasonable fee of $5000 to find additional logs to make up for the company's shortfall. The mill also incurred reasonable costs of $25,000 to transport the additional logs to its facility. Despite the mill's efforts to mitigate damages, it sustained $200,000 in losses because of the company's failure to timely deliver enough logs. The mill has used the company for breach of contract. If the court finds the mill, how much should it award in damages? A. $30,000 B. $32,000 C. $230,000 D. $232,000

C. $230,000 For breach of contract, a buyer is able to recover consequential damages of those secondary losses resulting from the breach, including lost profits. A buyer can recover reasonable incidental damages of those out of pocket expenses spent incident or after the breach to cover the loss. The broker and transportation costs are reasonable, typical costs of cover. The attorney fees are not incidental damages because they are not a result of the breach, but rather part of the normal operation of business.

On January 1, a college student accepted a contract for a summer position as a high-tech camp counselor at a salary of $25,000 starting in May. On January 25, the camp informed the student that due to a change in thematic focus of the camp, it no longer needed a full-time tech counselor. Instead, the camp offered to hire the student as a part-time sports counselor at a salary of $10,000, starting in May. The student refused the camp's offer. In February, the student was offered a summer position to teach computer technology at a private academy for $22,000, starting in May. The student, however, decided to spend the year taking accelerated college classes toward her degree and declined the academy's offer. If the student sues the camp for breach of contract, what is her most likely recovery? A. $25,000, the full contract amount. B. $15,000, the full contract amount minus the amount of the part-time position offered. C. $3,000, the full contract amount minus the amount the student could have earned at the academy. D. Nothing, because the camp notified the student its decision before the student had any reliance losses.

C. $3,000, the full contract amount minus the amount the student could have earned at the academy.

Tarzan entered into a contract to buy Treehouse from Jane. Jane represented to Tarzan that the Treehouse was the most wonderful place in the world. Jane indicated that she valued the Treehouse at $15,850 based on estimates of comparable homes in the jungle, but that she would sell it to him for $11,500 in order to get out of the wild jungle. Tarzan is pleased that he got a great deal, and spends $2,000 to design the interior of the house in the latest jungle fashion. However, after a few months in the Treehouse, Tarzan discovers that the house was not in fact the most wonderful place in the world, but instead was a dump. He sells the house for $8,750 to Gorilla Joe to use for zoo animals and sues Jane for misrepresentation. What is his most likely recovery? A. $2000 B. $2750 C. $7100 D. $9100

C. $7100

Parent enrolls ten-year-old Son in a private academy. She signs the enrollment contract providing that Parent would pay the academy $5,000 for a one-year enrollment, and paid the required $1,000 deposit, leaving a balance of $4,000. By the terms of the contract, the remaining balance was to be paid at the beginning of the school term in September. It further provided that "enrollment can be canceled without penalty only if done in writing prior to July 1. If enrollment is canceled after July 1, Parent is obligated to pay the full tuition fee, less any previously paid deposit." This provision was just above the signature line and printed in the same size font as the rest of the contract. Academy desired the provision because budgeting decisions including staff salaries and building improvements were based on expected tuition as of July 1. Parent decides to send Son to public school instead. Parent notified Academy in writing on July 15 that Son would not attend. Academy has no students on a wait list, and takes no further action to find a substitute student for Son's spot. If the school sues Parent for $4,000, what is the likely result? A. Academy is entitled to the full amount of the tuition as its expectation under the contract. B. Academy is entitled to the full amount of the tuition because it took reasonable measures to mitigate loss. C. Academy is entitled to the full amount of tuition because it is a reasonable liquidated damages provision. D. Academy isn't entitled to recover because its contract is an unenforceable penalty.

C. Academy is entitled to the full amount of tuition because it is a reasonable liquidated damages provision. A valid, reasonable liquidated damages clause because it is proportional to the estimated loss of salaries and the building.

A small school district segregated its two elementary buildings based on gender. It found that students learned better when grouped by sex. The district's experience showed that girls were more assertive and boys less rambunctious when educated with other students of the same sex. The Franklin Court of Appeals struck down the single-sex education as a violation of the Constitution's Equal Protection Clause. What is the appropriate reparative injunctive relief for this case? A. Stop assigning students to schools based on sex. B. Design educational programs to attract make students. C. Admit male students to the female school. D. Restructure district schools to achieve sex equality.

C. Admit male students to the female school.

A small school district segregated its two elementary buildings based on gender. It found that students learned better when grouped by sex. The district's experience showed that girls were more assertive and boys less rambunctious when educated with other students of the same sex. The Franklin Court of Appeals struck down the single-sex education as a violation of the Constitution's Equal Protection Clause. What is the appropriate reparative injunctive relief for this case? A. Stop assigning students to schools based on sex. B. Design educational programs to attract make students. C. Admit male students to the female school. D. Restructure district schools to achieve sex equality.

C. Admit male students to the female school. This repairs the ongoing consequences of the past discrimination by admitting boys.

In a divorce action, the court orders wife, a Muslim, to attend counseling on the effects of divorce on children prior to the entry of the divorce decree. The court's action is taken pursuant to a newly enacted family court rule that requires such parental counseling, and requires that the counseling must be done at a court-approved agency. Because the court is situated in a small town, the only approved counseling services are run through the Catholic Social Services (CSS). CSS states that it offers a "secular curriculum," but prior participants have complained that the course has a strong religious content. Wife refuses to attend the counseling at CSS on grounds that it violates her freedom of religion. What remedies are available to the court? A. Termination of the injunction B. Modification of the injunction. C. Civil contempt of court. D. Criminal contempt of court.

C. Civil contempt of court. Court could issue a coercive civil contempt to force defendant to go to the counseling by jailing her or fining her until she complies. The term would be conditional and avoidable as she would hold the keys to her own cell.

Two days before his home was to be sold at a foreclosure sale, a homeowner obtained a temporary restraining order (TRO) in federal court that prevented his lender from proceeding with the sale for 14 days or until a preliminary injunction hearing could take place, whichever was sooner. When a preliminary injunction hearing could not be scheduled within the original 14-day period, the court extended the TRO for another 30 days. The lender appealed the court's order extending the TRO. How is the appellate court likely to rule on the appeal? A. Deny because a TRO isn't appealable. B. Consider because the extension has made the order a final judgment. C. Consider because the extension has made the order a preliminary injunction. D. Deny because there is no liklihood of success on the merits.

C. Consider because the extension has made the order a preliminary injunction. TROs are generally not appealable, unless they have effectively become the final order. Although TROs are not immediately appealable, preliminary injunctions are. Because the TRO was extended for such a long period of time—30 days—the TRO is essentially a preliminary injunction, which is immediately appealable.

Bonnie Ray is the latest TV cooking sensation, and her new cookbook is number one on the bestsellers list. It turns out that Bonnie took all of the recipes from her mother-in-law. She told her mother-in-law that she wanted to have all the family's secret recipes to continue the traditions in her own family. However, Bonnie really intended to publish the recipes in her new book. What equitable theory of restitution would assist Mother-in-law in disgorging all of Bonnie's profits? A. Equitable Lien B. Quasi-contract C. Constructive Trust D. Accounting of Profits

C. Constructive Trust A constructive trust would disgorge all of the profits from Bonnie's fraudulent use of her mother-in-law's recipes. Constructive trust is available when the plaintiff originally owned the property at issue and when the defendant commits a wrong involving fraud or breach of a confidence. Both of these elements are satisfied in this scenario.

A tenant leased in writing a 100-acre farm from a farmer for five years at $2,000 per year, with an option to purchase "five acres of land for $10,000 cash" at the end of the lease term. The tenant promised to have the five-acre parcel surveyed before the end of the lease term, although he never did. The tenant took possession of the farm and paid rent for five years. During the fifth year, having decided that he would exercise the purchase option, the tenant planted several fruit trees and built a large grain silo on the property. At the end of the term, the tenant paid the farmer $10,000 and demanded a conveyance. However, the farmer legally repudiated the option agreement and retook possession of the farm due to the tenant's failure to have the parcel surveyed. In an action by the tenant against the farmer for the reasonable value of the improvements that the tenant added to the farm, which of the following options would best support the tenant's recovery? A. Quasi-contract B. Constructive Trust C. Equitable Lien D. Unjust Enrichment

C. Equitable Lien Equitable Lien is to recover debt for improvements made to land of another.

Carl entered into a valid written contract with Owen to build a house for Owen. The contract specified the house must be internally wired with fiber optic cable. Upon completing work on the house, Carl realized he had unwittingly substituted coaxial cable for fiber optic cable. For Owen's needs, coaxial cable is substantially the same quality as fiber optic cable and performs substantially the same as fiber optic. When Carl informed Owen of this error, Owen objected. They were unable to resolve the issue to Owen's satisfaction, so Owen sued Carl for specific performance to require him to remove the coaxial cable and replace it with fiber optic cable or, in the alternative, for money damages for the cost of replacement. How would the Court be likely to rule on Owen's claims against Carl for specific performance and damages? A. Grant specific performance B. Grant damages of the cost of replacement C. Grant damages of diminution in value D. Grant damages of depreciated value

C. Grant damages of diminution in value The alternative measure would be to award the plaintiff the diminution in value of the cables promised versus the cables delivered.

Two sales representatives quit their jobs at a paper company to start their own business selling corrugated paper and begin selling in their old sales territories. The company sues them for violating the terms of their employment agreements which provided that in the event the reps quit or were terminated from the company, they agreed not to solicit former customers. The court enters an injunction preventing the former employees from selling corrugated paper anywhere in their former territory. What decision will the court of appeals likely make as to the validity of the injunction? A. Valid as prophylactic injunction. B. Valid because the scope of the injunction equals the scope of the harm C. Invalid because the scope of the injunction exceeds the scope of the harm. D. Invalid as a prophylactic injunction that fails to correct the consequences of the harm.

C. Invalid because the scope of the injunction exceeds the scope of the harm.

Howell works as regional vice-president for the XYZ Chemical Corporation which specializes in direct sales of heavy duty cleaning supplies to large industrial plants. XYZ employed Howell pursuant to a written contract which contained a provision prohibiting "competition with the business of the company in any respect for a period of five years following dismissal or termination of employment." Howell has an aggressive marketing attitude and would like to sell to potential customers over the Internet. The president of XYZ, however, responded that "We've always sold XYX products just one way - direct customer contact. The Internet is too impersonal." Howell is dissatisfied with the company's old-fashioned marketing techniques and is thinking about leaving the job to pursue the idea of Internet sales. Howell is concerned that the contract would preclude him from starting such a business, and files an action seeking a declaration that the contractual term "competition" does not include Internet sales. Is he entitled to declaratory relief? A. Yes because the controversy is definite and concrete B. Yes because the parties are adverse C. No because the controversy isn't ripe D. No because DJ aren't available for contracts

C. No because the controversy isn't ripe The controversy is not ripe because there is not real and imminent threat yet as there are still several steps left to be taken, from the employee leaving, then doing Internet sales, and then a threat from the company.

A snack cart business sells foods on a street corner at First and Main in the middle of a university campus. This business has sold snacks at this location for four years, but is finding that business has dwindled this year due to the construction of a new university library on the other side of campus. The business moves its snack cart to a new location at Second and Elm right in front of the library and business improves. The university, however, receives a complaint from a coffee company, which is licensed by the university to sell coffee at the library. The university files a complaint against the snack truck for trespass and seeks a preliminary injunction enjoining it from selling coffee anywhere on campus. What is a court likely to do? A. Enjoin business from selling snacks anywhere on campus B. Permit business to sell snacks at the library location to preserve the status quo C. Permit business to sell snacks at First and Main to preserve status quo D. Deny the preliminary injunction which fails to advance the public interest

C. Permit business to sell snacks at First and Main to preserve status quo The black letter law states that the basic goal of a preliminary injunction is to preserve the status quo while the parties litigate the case. Determining the status quo is sometimes difficult when a party, like snack business, has changed his behavior just prior to the initiation of the lawsuit. Courts thus look for the last uncontested or agreed upon status quo. Here, that last uncontested position would be business selling snacks at the First and Main location where he worked for over four years without university complaint.

A famous actress has been continually hounded by the media and paparazzi since her marriage to a prince. One reporter in particular has harassed her and continually invaded her privacy over the last ten months. In the past six months, the reporter has printed twenty stories about the actress. While no article or picture has appeared in the last few weeks, the actress is interested in taking legal action to stop the reporter from violating her privacy, and files a lawsuit against him. What type of injunctive relief is a court likely to award at this stage of the litigation? A. Temporary Relief B. Temporary and Preliminary Relief C. Preliminary Relief D. Preliminary and Permanent Relief

C. Preliminary Relief Actress may obtain a preliminary injunction to enjoin reporter from violating her privacy while the litigation is pending. She has filed her complaint and can show an irreparable harm. She can not obtain temporary relief because there is no threat of imminent harm shown. While reporter has violated her rights in the past, he has not committed any violation in the past few weeks, nor any indication there is an upcoming threat. Temporary relief only enjoins harm that is threatened before the time the adverse party can be heard in opposition at a hearing. In the absence of that type of threatened harm here, Actress cannot obtain a TRO. At this initial stage of the litigation, actress will be unable to obtain a permanent injunction as permanent relief is not available until the conclusion of trial

Animal rights protest groups are arrested and prosecuted for trespassing on private research lab property and for assaulting the lab employees. After finding that the protesters violated the federal law against testing endangered species, the court orders the protesters to "stop blocking or interfering with public access to lab property and physically abusing persons at the lab." When protesters fail to comply with the first injunction, the court orders the protesters to stay 35 feet away from the lab grounds. What types of injunctive measures has the court issued against the protesters? A. Reparative and Preventative B. Structural and Reparative C. Preventative and Prophylactic D. Prophylactic and Structural

C. Preventative and Prophylactic The court's order to "stop blocking and assaulting" is a preventive measure that is designed to stop the ongoing harm in the future. The second court order imposing a 35-foot buffer zone around the lab is a prophylactic measure that establishes additional safeguards to address one facilitator of the continued assaults, which is the close physical proximity between the lab and the protesters.

A class of plaintiffs comprised of descendants of former slaves sued CSX Railroad Co. and Aetna Insurance Company for profiting from slave labor. The allegations of the complaint are that CSX constructed its railroad lines using slave labor. The complaint also states that Aetna insured slave owners and collected premiums against the loss of their property, the slaves. What types of restitution remedies would best address these claims if proven? A. Quantum meruit against CSX and Aetna. B. Quasi-contract against Aetna and constructive trust against CSX C. Quantum Meruit against CSX and profits against Aetna D. Rescission against Aetna and constructive trusts against CSX

C. Quantum Meruit against CSX and profits against Aetna Quantum Meruit for value of labor and accounting of profits

A school system entered into a consent decree regarding the provision of services to physically disabled students. The school implemented the decree over several years and made 85% of the educational and structural changes required in the decree. Three years later, a proposed annexation with a neighboring school threatened to triple the number of disabled students in the school district, which would negate many of the remedial changes and significantly increase the costs of compliance. What relief would the school prefer to seek? A. Termination because of changed circumstances and that the object of the law was achieved B. Modification because of substantial compliance in good faith C. Termination because of substantial compliance in good faith D. Modification because of grievous wrong from unforeseen conditions

C. Termination because of substantial compliance in good faith

A contract between a camera store and a distributor of camera lenses called for the sale of 20 standard zoom lenses that would be compatible with a particular manufacturer's film and digital cameras, for a price of $300 per lens. After an employee of the camera store with authority to accept deliveries accepted shipment of the zoom lenses, store personnel learned that the lenses would not work with the manufacturer's film camera, but instead were compatible only with the manufacturer's digital camera. The camera store filed suit. At trial, the store's attorneys established that the nonconforming lenses were worth $200 per lens. Which of the following should be the measure of damages applied to determine the camera store's loss? A. The cost of purchasing lenses compatible with the manfacturer's film camera from another supplier B. The contract price of $6,000 because the camera store hasn't received the benefit of its bargain C. The difference between the value of the lenses as received and their value if they had been compatible with the manufacturer's film camera—$2,000 D. The camera store is not entitled to damages, because its employee accepted the lenses as shipped by the distributor.

C. The difference between the value of the lenses as received and their value if they had been compatible with the manufacturer's film camera—$2,000 The camera store's measure of loss is the difference between the value of the goods as received and the value they would have if they conformed to the contract. When goods are delivered that do not conform to the contract, buyer has the option to accept all, reject all, or accept any commercial units and reject the rest. If the buyer chooses to accept the goods, the buyer has a right to recover damages for the nonconformity. The standard measure of damages for accepted goods is the difference between the value of the goods as delivered and the value they would have if they had been conforming (plus incidental and consequential damages). Here, the goods as delivered were worth $4,000 ($200 per lens for 20 lenses) and they would have been worth $6,000 ($300 per lens for 20 lenses) if they had been as the contract required.

The San Diego Clippers, a professional basketball team in the NBA, want to relocate to Los Angeles. The Clippers negotiate with the LA Lakers team to waive the conflict under League rules of two NBA teams operating in the same city. The NBA, afraid of antitrust liability under a recent ruling prohibiting them from voting to block franchise relocation, reluctantly schedules the Clippers' home games in LA. The League, however, files an action seeking a declaratory judgment that the antitrust laws permit it to fine a team for moving in violation of the League's policies when the move appropriates a financial interest of the League to itself. Is the NBA entitled to declaratory relief? A. No because they want a declaration of antitrust liability to avoid penalties B. No because the controversy isn't definite and concrete C. Yes because the controversy is ripe D. Yes because contempt would be available

C. Yes because the controversy is ripe The dispute is ripe because there is no other factual step for the NBA to do except impose the fine. This presents the MedImmune dilemma of having to risk liability or abandon a legal claim of right that declaratory judgment is intended to redress.

Steffel and Becker have been passing out anti-war leaflets against the Iraq War in a shopping center in Akron. The police warn them twice that they must stop leafleting or they will be arrested and prosecuted for criminal trespass. Steffel quits passing out the handbills; Becker continues and is prosecuted. Steffel sues seeking declaratory relief that the criminal trespass statute is being applied in violation of his First Amendment rights. Is he entitled to declaratory relief? A. No because the controversy isn't sufficiently adverse B. No because the controversy isn't definite and concrete C. Yes because the controvery is ripe D. Yes because he wants to enjoin the police.

C. Yes because the controvery is ripe The controversy is ripe because the person has taken all necessary and last steps up and to the point of a violation of the law, and only government coercion has stopped him from further action.

In December 2011, a federal district judge issued a preliminary injunction ordering Arizona Sheriff Joe Arpaio and his deputies to stop targeting Latino drivers. At that time, Arpaio was told by the court that he could not detain immigrants simply because they lacked legal status. Prosecutors showed that Arpaio's deputies defied the injunction for at least 18 months. In May 2013, the judge ruled that Arpaio's office had engaged in racial profiling. Arpaio and his deputies have admitted to violating the judge's order, but claimed it wasn't intentional. The court found after a full hearing in which Arpaio was represented by counsel that he showed flagrant disregard for the order and made no attempts to get the compliance of his deputies. The judge sentenced the 85-year-old Arpaio to up to six months in jail. Is this a valid contempt remedy? A. No, because it was summary contempt. B. Yes, as civil coercive contempt. C. Yes, as criminal contempt. D. No, because the conduct wasn't intentional.

C. Yes, as criminal contempt. Court is punishing Sheriff for a past violation of the court's preliminary injunction order, the sanction is for a fixed term that is not avoidable by the defendant, and it appears full procedural safeguards were provided.

Kim Davis, a Kentucky county clerk, refused to comply with a court order that she issue marriage licenses to same-sex couples. Davis had refused to issue the licenses, claiming that it violated her strong religious beliefs that marriage was only between man and woman. The court held that after Obergefell which recognized the fundamental right of LGBT couples to marry, she must issue the licenses. The Court of Appeals denied the appeal. When Davis continued to refuse to issue the licenses, the court jailed her until she issued the licenses. Is this a valid contempt remedy? A. No, because the conduct wasn't intentional. B. No, because the collateral bar rule allows the Defendant to assert her religious rights. C. Yes, because the goal is to coerce the Defendant's behavior. D. Yes, because the goal is to punish the Defendant's behavior.

C. Yes, because the goal is to coerce the Defendant's behavior. Court is trying to coerce defendant's behavior of issuing the licenses. The sanction is conditional in time and avoidable by the defendant who holds the keys to her own cell and can be released any time upon compliance.

A sports collector paid a shop $500 to purchase a framed autographed baseball from the store's online catalogue. The price included shipping by the store to the collector's home. The store poorly wrapped and packaged the baseball. As a result, the frame broke during shipment and scratched the signature on the ball, reducing the ball's value to $100. The collector complained to the store owner, who told the collector to take the frame to a certain expert to have the frame repaired. The collector paid the expert $300 to make the repairs, but not all of the damage could be fixed. The autographed baseball, after being repaired, was worth $200. The store owner subsequently refused to pay either for the repairs or for the damage to the baseball. In an action by the collector against the gallery owner for damages, which of the following awards is most likely? A. $0 B. $300 C. $400 D. $600

D. $600

A sports collector paid a shop $500 to purchase a framed autographed baseball from the store's online catalog. The price included shipping by the store to the collector's home. The store poorly wrapped and packaged the baseball. As a result, the frame broke during shipment and scratched the signature on the ball, reducing the ball's value to $100. The collector complained to the store owner, who told the collector to take the frame to a certain expert to have the frame repaired. The collector paid the expert $300 to make the repairs, but not all of the damage could be fixed. The autographed baseball, after being repaired, was worth $200. The store owner subsequently refused to pay either for the repairs or for the damage to the baseball. In an action by the collector against the gallery owner for damages, which of the following awards is most likely? A. Nothing B. $300 C. $400 D. $600

D. $600 For the breach of warranty case, damages are usually measured by the repair costs ($300) plus remaining diminution in market value ($500-200=$300) = $600

The national champion Zips soccer team orders new soccer balls for its team. The balls are marketed as top flight and guaranteed to improve the velocity of kicked balls. When the team starts practicing with the new soccer balls, it discovers that there is nothing special about the balls at all, and they perform the same as any others. The team sues the ball manufacturer for breach of warranty. What is the likely remedy for the team? A. Specific performance because the balls are unique. B. Specific performance because damages are inadequate. C. Damages for difference between the contract price and the cost of buying substitute goods. D. Damages for the difference between the value of the goods delivered and the value of goods promised.

D. Damages for the difference between the value of the goods delivered and the value of goods promised.

A married couple owned a little historic Victorian cottage that they bought in 2000 for $250,000. Last year, an automotive company built a large manufacturing plant just behind their cottage. The plant involved huge capital expenditures and now employs many of the town's residents. The couple is upset over the loss of their quaint view and annoyed by the smelly fumes emitted from the plant. They list their house for $150,000 based on an appraisal valuing the house at $125,000 but attract no buyers. The couple sues the plant for nuisance seeking to shut down the plant. What relief are they likely to obtain? A. Injunction and damages for the diminution on the value of the property B. Damages for the depreciated market value of the property and emotional distress C. Injunction and incidental damages for the cost of relocation D. Damages for the diminution in the value of the property and loss of quality of life

D. Damages for the diminution in the value of the property and loss of quality of life Diminution in market value house caused by nuisance + loss quality of life

A manufacturer of a generic brand medicine is sued by the patent holder for the branded medicine for patent infringement. A second manufacturer of the generic is afraid that it will also be sued by the patent holder for infringement. Rather than risking a significant loss of profits, as well as paying damages and attorney fees, it would like to resolve the legal dispute in advance. If the second generic manufacturer sues the patent hold seeking a declaratory judgment, what is the likely result? A. Granted because it would terminate the uncertainty B. Granted because there is no procedural fencing C. Denied because the issue isn't concrete D. Denied because the issue isn't ripe.

D. Denied because the issue isn't ripe. Not all facts are completed in order to take the controversy up until the last step prior to subjecting the company to penalty. The patent company hasn't threatened the manufacturer, and there are still some steps left and it is too early for the court to intervene.

An agency sues a computer company for failure to deliver 100 computer screens which it says it purchased for $200 each. The agency still wants the screens, and seeks their immediate delivery. At trial, there is no evidence proven of a written contract or any testimony about an offer and acceptance. Evidence is presented that the agency wrote a check to the computer company for $20,000 and that company deposited that check in its bank account. Upon what basis would the agency be entitled to relief? A. Rescission B. Express Contract C. Quasi-Contract D. Implied-In-Fact Contract

D. Implied-In-Fact Contract The facts of the check and its deposit into the bank account provide circumstantial evidence to establish that an actual contract was created between the parties. An implied-in-fact contract isn't a restitution theory, but rather a theory to establish a contractual basis upon which to seek further legal or equitable relief.

In a divorce action, the court orders wife, a Muslim, to attend counseling on the effects of divorce on children prior to the entry of the divorce decree. The court's action is taken pursuant to a newly enacted family court rule that requires such parental counseling, and requires that the counseling must be done at a court-approved agency. The only approved counseling services are run through religious churches, though one church offers a "secular curriculum," which still includes religious content. The wife refuses to attend the counseling on grounds that it violates her First Amendment right to freedom of religion. If the court refuses to grant the divorce without the counseling, what remedies might be available to wife ? A. Injunction restructuring the court referred counseling B. A contempt defense that the order is transparently invalid C. Disobedience of the counseling order D. Injunction to issue the divorce

D. Injunction to issue the divorce A reparative injunction would repair the ongoing consequences of the court's past harm of the unconstitutional counseling mandate by correcting the ongoing consequence of no divorce.

Susan separated from her husband six months ago due to his domestic violence against her and has been residing with a friend. During these six months, Susan's husband has left her alone even though he was aware of her location. Susan is now filing for divorce, and in an initial ex parte proceeding, asks the court to issue a restraining order prohibiting her husband from assaulting or harassing her and requiring him to stay away from her residence and place of work. What injunction(s) should the court issue at this time? A. Temporary injunction only B. Temporary injunction and preliminary injunction C. Preliminary injunction only D. Neither temporary or preliminary injunction

D. Neither temporary or preliminary injunction

Howard negligently causes a car accident with Carol's car. Carol is ejected from the car due to the impact because she is not wearing her seat belt since she is nine months pregnant. She is saved from injury by her imported Swedish imitation down coat, but lands on a burning cigarette which ignites the coat. Carol sues Howard for the loss of the $4000 coat. What arguments can Howard successfully make against recovery? A. No recovery because damages are speculative and remote B. No recovery because damages are speculative and consequential C. No recovery because the damages are consequential and avoidable D. No recovery because damages are avoidable and not foreseeable.

D. No recovery because damages are avoidable and not foreseeable. Plaintiff can't recover for the loss of the coat because they were avoidable by her reasonable efforts of wearing a seat belt. They aren't foreseeable to the defendant as they remote, and far removed from the initial harm, because the loss of the coat comes after several factual steps of the car accident to no seat belt to ejection to burning cigarette to coat loss.

A middle school teacher is arrested for sexually molesting one of his students. He is arraigned on charges of sexual molestation, assault, and a lesser misdemeanor. The teacher's insurance company sues for declaratory judgment seeking an order stating that there is no coverage for molestation. How should the court rule? A. Grant the DJ because it would serve a useful purpose B. Not grant the DJ because it wouldn't serve a useful purpose C. Grant DJ because it would terminate the uncertainty D. Not grant DJ because it wouldn't terminate the uncertainty.

D. Not grant DJ because it wouldn't terminate the uncertainty. DJ would not terminate the uncertainty because the insurance company is only seeking a declaration about one of the three claims asserted. So even if there is no coverage for molestation, there may still be coverage for one of the other two claims, and so the coverage question would not be settled.

John's father acquired a large collection of anvils, which ultimately came into John's possession. John loaned the collection to the local museum and hired professional movers to transport the anvils to the second floor of the museum where they would be displayed. The movers used an old rope and pulley to lift the anvils on the outside of the building to a second-story window. While one of the largest anvils was being lifted, it slipped and fell, crashing through the roof of Jane's parked car. Jane had just walked out of the drugstore across the street and saw the entire incident. Although the anvil wasn't even dented, Jane's car was extensively damaged. If John brings a negligence action against the movers for allowing the antique anvil to fall, he can recover: A. Nominal damages B. Compensatory Damages C. Presumed Damages D. Nothing

D. Nothing

Homeowner puts his house and lot on the market for $200,000. Homeowner received several offers within $5,000 of his asking price, but he rejected them because he believed the house was worth more than his asking price. A realtor brought homeowner a $200,000 bid from a buyer, which the homeowner readily accepted. The contract provided that buyer put up $4,000 in earnest money, which the seller could treat as liquidated damages "unless homeowner fails to tender marketable title to the buyer by the agreed-upon closing date, homeowner commits a material breach of this contract, or buyer dies prior to the closing date, in which case the earnest money shall be reimbursed to buyer's estate." One month prior to the closing date, buyer was seriously injured in a skydiving accident and doctors told him he would have to use a wheelchair for a long time. Homeowner's house was a two-story home, with stairways, and buyer determined that at ranch-style house would make his life much more bearable. Buyer contacted homeowner to say that he would not proceed with the purchase because of his physical problems. He asked homeowner to cancel the contract and to refund the $4,000 earnest money. Homeowner refused. Buyer did not appear on the closing date. Homeowner sold the home to a second buyer for $198,000. Buyer files suit against homeowner, seeking a refund of the $4,000 earnest money. Buyer is likely to recover: A. The enture $4,000 because buyer had a justified medical reason for his failure to perform. B. $2,000 because the diminution in value of the property was only $2,000 C. $2,000 less any of homeowner's out-of-pocket costs involved in remarketing the home. D. Nothing, because at the time the contract was entered into, $4,000 represented a reasonable estimate of damages in the event of breach.

D. Nothing, because at the time the contract was entered into, $4,000 represented a reasonable estimate of damages in the event of breach. The amount of $4000 is reasonable liquidated damages clause in light of other offers received within $5,000 of purchase price which was anticipated loss and $2000 which was actual loss.

Natalie Merchant brings an action against The Ten Thousand Maniacs, Inc. seeking a declaration that she, and not the Maniacs, owns the copyrights to a series of songs she wrote as a member of the Ten Thousand Maniacs band. A California court determines that Merchant is the proper copyright holder, and issues declaratory relief in her favor. Eight months later, Merchant discovers that the Maniacs are still selling and licensing her songs as if they in fact owned the copyrights. How can Merchant enforce her declaratory judgment? A. She can't, as there is no enforcement mechanism B. She can seek civil compensatory contemp C. She can seek further relief of contempt D. She can seek further relief of lost profits

D. She can seek durther relief of lost profits D. She can seek further relief of lost profits A party may seek further relief to enforce a DJ where it is necessary or proper, which may include all other remedies like damages and restitution measures of lost profits.

The University solicits bids for artists to design the mural at its new student activity center. One artist submits a low bid of $5,000 to design the plans for the mural. The artist's bid is accepted contingent upon funding from the National Arts Council. She shows her initial designs to the University board and it approves her work. However, six months into the project, the University's funding for the mural is lost. She has completed 90% of the design work when she is told that the project is cancelled pursuant to the terms of the contract. By this time, she has expended $9,000 worth of work on the project. What action can the artist take against the University? A. Sue in quasi-contarct for $5,000 B. Sue in quasi-contract for $9,000 C. Sue in quantum meruit for $5,000 D. Sue in quantum meruit for $9,000

D. Sue in quantum meruit for $9,000 Quantum meruit is a claim to recover the value of services rendered. Here, the more specific action of quantum meruit is appropriate for Artista to seek recovery of the value of her design services provided to the University. This is a situation of a "losing contract" when a party has entered into a contract that if performed, would lose her money. By virtue of the cancellation of the contract and her partial performance, the plaintiff gains an opportunity to sue in restitution for the value of the services rendered under the theory that the design work was intended for University's benefit.

On April 1, Owner and Buyer signed a writing in which Owner, "in consideration of $100 to be paid to Owner by Buyer," offered Buyer the right to purchase Greenacre for $100,000 within 30 days. The writing further provided, "This offer will become effective as an option only if and when the $100 consideration is in fact paid." On April 20, Owner, having received no payment or other communication from Buyer, sold and conveyed Greenacre to Citizen for $120,000. On April 21, Owner received a letter from Buyer enclosing a cashier's check for $100 payable to Owner and stating, "I am hereby exercising my option to purchase Greenacre and am prepared to close whenever you're ready." Assume that Buyer prevails on the merits in a breach of contract suit against Owner. Which of the following is Buyer entitled to recover? A. Nominal damages only, because the remedy of specific performance wasn't available to Buyer B. The fair maket value, if any, of an assignable option to purchase Greenacre for $100,000 C. $20,000 + the amount, if any, by which the fair market value of Greenacre on the date of Owner's breach exceeded $120,000 D. The amount, if any, by which the fair market value of Greenacre on the date of Owner's breach exceeded $100,000

D. The amount, if any, by which the fair market value of Greenacre on the date of Owner's breach exceeded $100,000 For breach of contract damages, Buyer is entitled to the lost value of the contract. Here, the value of the contract is the value of Greenacre. Buyer however would have had to pay $100,000 to purchase that value. So the only loss from the breach is any additional expectation in the value of Greenacre above the $100,000 purchase price. Here, that would be $20,000 as evidence by the other sale.

A wholesaler sent a telegram to a chair manufacturer to "Send 500 'Madewell' chairs at your usual price." The manufacturer responded, also by telegram, "Will ship our last 500 Madewell chairs at $75 per chair, our usual price. Madewell line is being discontinued." The manufacturer's staff immediately began the paperwork for processing the order and started preparing the chairs for shipment. The wholesaler wired back to the manufacturer, "Cancel order for Madewell chairs; your price is too high." The wholesaler tried to find an alternate source for Madewell chairs and found one furniture manufacturer that made chairs. The second manufacturer also charged $75 per chair, and the wholesaler bought 500 Madewell chairs from this second company at the $75 price. The week after receiving the wholesaler's cancellation, the chair manufacturer was able to sell its 500 Madewell chairs to another buyer for $75 each. If the chair manufacturer sues the wholesaler for damages, how much should the manufacturer recover? A. The cost of processing the order for wholesaler and preparing for shipment B. Nothing, because the chair manufacturer was able to cover by selling the chairs at the same price it would have received from the wholesaler. C. $7,500 the profits wholesaler would've made on the contract with wholesaler. D. The chair manufacturer's incidental costs of insuring and storing the chairs while it searched for a second buyer.

D. The chair manufacturer's incidental costs of insuring and storing the chairs while it searched for a second buyer. Incidental damages are the costs of resale. For breach of contract, seller gets incidentals + difference between contract price and resale or market price of goods. The contract price was the same as resale price, so no general damages. Sellers do not recover consequential damages, but may recover incidental damages- out of pocket losses incident to the breach.

A musician works at a rare instrument shop. She signs an employment agreement indicating the special trust the owner has placed in her for these rare items and promising that she will not use any of the instruments except in demonstrations to customers. The musician secretly takes home one of the instruments and uses it to write a hit song that wins a Grammy and reaps great profits for the musician. The shop sues the musician for unjust enrichment. What is the likely measure of recovery for the shop if it is successful? A. The value of the songwriting services B. The value of the guitar C. The apportionment of profits related to the songwriting D. The profits from the song

D. The profits from the song Snepp holds where (1) deliberate and surreptitious breach of trust (2) need or deterrence justifies award of all profits.

A Mexican restaurant obtained a change in zoning for the 240-acre parcel of land it owned on the edge of town from agricultural to commercial and residential. The restaurant validly recorded a restrictive covenant on the deeds requiring every building to be constructed in the subdivision style of "simulated adobe style." The restaurant then sold many of the commercial lots to a development company who subsequently sold one lot to a hamburger franchise. The deed conveying the lot to the franchise included the reference to the design restriction. The burger franchise was famous for its nationwide building design of a giant burger. The franchise had already entered into a contract with the construction company which constructed the prefabricated restaurant over the weekend shortly after the close of escrow. A neighboring business, a gift shop, discovered the giant burger design after it was built. It is undisputed that the original adobe covenant ran with the land and that the burger franchise was aware of the covenant. The gift shop brings an action seeking a mandatory injunction compelling the burger franchise to comply with the adobe covenant. Should the court issue the injunction? A. No, because of economic waste to the burger franchise B. Incorrect, because of the public interest in promoting business competition C. Yes because land is unique D. Yes because the burger franchise was culpable in creating the need to redesign

D. Yes because the burger franchise was culpable in creating the need to redesign The franchise's culpability in intentionally disregarding the covenant overcomes the costs and economic waste of redesigning the building.

The Department of Justice sued (LSAC) for its failure to accommodate disabilities on the LSAT, in violation of the ADA. The parties entered a consent decree in effect for four years that altered how LSAC treats requests for accommodations and reports scores for tests taken with accommodations, appointed a panel of experts to advise LSAC, and imposed recordkeeping and reporting requirements. Several years later, the Department went back to court due to LSAC's failure to comply with the consent decree. The Department sought an extension of the decree from four years to six years, additional access to records and reports of LSAC, and payment of attorney's fees for the cost of bringing the motion. Can the court grant the Department's motion? A. Yes, as civil coercive contempt. B. No, because contempt isn't available for a consent decree. C. No, because modification can't issue with contempt. D. Yes, as a modification and civil compensatory contempt.

D. Yes, as a modification and civil compensatory contempt. The changes in the terms and length of the consent decree are modifications based on changed factual circumstances- defendant's failure to comply with the consent decree. The sanction of money to compensate for the loss of bringing the motion for contempt is civil compensatory contempt.