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Study QuestionsMGMT 3540 - Business Law Chapter 14 – Remedies 14.1List and describe the remedies available in the two types of courts in our legal system. How are the types of court different? 14.2Allen agrees to sell 11 iPads to John in exchange for $5,000. The fair market value is $3,500. Three weeks before delivery is due, John informs Allen not to deliver the iPads because he (John) is broke and will not be able to pay for the iPads. If Allen wants to sue John immediately, will he prevail or will he have to wait until the three weeks pass? How much will Allen receive if he prevails? 14.3Brent sells his small hardware business to Duncan, and under the contract Duncan must pay the wholesale “value” of Brent’s inventory after the inventory is audited. After the audit, Brent asks Duncan for $95,000, which is the amount he paid for the inventory. Duncan says the current value of the inventory is only worth $75,000, and he pays only that amount. Brent sues Duncan for the $20,000 difference, but the court only awards him $5,000. Assuming the judgment is final and Brent pays the $5,000, Can Brent recover anything else in court under the contract? Why or why not? How much will he get? 14.4What are the six categories of money damages listed in the notes? Please give a brief description of each. 14.5Cotton Co. contracts to sell J. Crew LLC 8,000 v-neck sweaters in exchange for $50,000. During its flight, the Cotton Co. delivery truck transporting these v-neck sweaters crashes and destroys the sweaters. Assuming the contract is silent on the issue, does J. Crew still have to pay for the 8,000 v-neck sweaters? Why or why not? 14.6Tom starts a beverage distribution company and agrees to sell 15 bottles of high-end vodka to the Snake-Hole Lounge, a local bar, for $1,500. The order is to be delivered on May 1, 2016. However, Tom forgets to fill the order and fails to deliver the vodka on time. When Snake-Hole calls Tom, he has no more vodka. As a result, the Snake-Hole Lounge spends $500 to travel to another distillery to taste and purchase 15 bottles of high-quality vodka. Snake-Hole gets the replacement shipment three days after their other high-quality vodka runs out. According to previous sales, the Snake-Hole had profits of $200 per day on their high-end vodka. The replacement vodka costs the owners of the Snake-Hole Lounge $2,000. If the owners sue Tom for breach of contract how much will they be entitled to? Sample multiple choice questions to be answered as part of your homework: 1. “Interests” of parties to a contract in the event of breach include: 1.Expectation interest 2.Reliance interest 3.Restitution interest 4.All of the above 5.1 & 2 only 2. Joe continually trespasses by driving his four-wheeler across Tom’s private land. Which remedy would be the most appropriate for Tom to seek to prevent Joe from trespassing in the future? 1. Compensatory damages 2. Incidental damages 3. Specific performance 4. Injunction 5. None of the above 3. Rescission and restitution typically involve: 1. Court-ordered cancellation of a contract 2. Restoring the status quo or the pre-contract situation 3. Rewarding the party for completing the performance 4. 1 & 2 only 5. 1 & 3 only 4. Specific performance is available to order the transfer of which of the following? 1. A Ford Escape SUV 2. A rare antique lamp 3. An original painting 4. All of the above 5. 2 and 3 only 5. Liquidated damages clauses are enforceable when: 1. Damages are specifically proven 2. The amount is reasonable 3. The damages are foreseeable 4. All of the above 5. 2 & 4 only Fall 2016 Page 1