Remedies Practice Exam Questions

1. 1.Expectation damages: The buyer is entitled to the benefit of the bargain. Market-value measure: $150,000 (market value) minus $100,000 (contract price) = $50,000. Cover measure: $140,000 (cover price) minus $100,000 = $40,000.
2. 2.Specific performance: Specific performance may be appropriate because the car is rare/unique and money damages are inadequate to replace a unique item. Courts traditionally grant specific performance for unique goods (UCC 2-716).
3. 3.Restitution: The buyer may recover any deposit or payments made. If no payments were made, restitution is limited.
4. 4.Mitigation: The buyer's attempt to find a comparable car shows reasonable mitigation efforts. The duty to mitigate is satisfied.
5. 5.Consequential damages: Any foreseeable losses resulting from the breach that were within the contemplation of the parties at the time of contracting.

1. 1.Damages: The farmer is entitled to compensatory damages for past crop losses ($150,000 for three years). Future damages may also be recoverable.
2. 2.Permanent injunction: The farmer must show (1) irreparable injury, (2) inadequacy of legal remedies, (3) balance of hardships favors the farmer, and (4) the public interest is not disserved.
3. 3.Balance of hardships: The factory provides 200 jobs and produces $5 million in goods. A complete shutdown would impose severe economic harm. Courts may fashion a conditional injunction (requiring pollution controls rather than closure) or award permanent damages in lieu of an injunction (Boomer v. Atlantic Cement Co.).
4. 4.Public interest: Environmental protection and public health weigh in favor of injunctive relief, but economic impact on the community weighs against shutting down the factory entirely.

Correct Answer: B

Under the doctrine of substantial performance, when a contractor substantially performs but with a minor deviation, courts typically award diminution in value rather than cost of completion, especially when the cost of completion would result in economic waste disproportionate to the benefit gained (Jacob & Youngs v. Kent). Here, spending $20,000 to replace a liner for a $500 difference in value would be wasteful.

Correct Answer: B

Equitable relief is available only when the legal remedy is inadequate. The plaintiff already has an adequate legal remedy -- the money judgment. The difficulty in collecting the judgment does not make the legal remedy inadequate. The plaintiff may pursue post-judgment collection remedies (garnishment, liens) but cannot convert to equitable relief simply because the defendant lacks current assets.

Correct Answer: A

To obtain a temporary restraining order or preliminary injunction, the movant must show: (1) likelihood of success on the merits, (2) irreparable harm absent the injunction, (3) the balance of hardships favors the movant, and (4) the injunction serves the public interest (Winter v. Natural Resources Defense Council). Customer diversion from a non-compete breach often constitutes irreparable harm because the loss of goodwill is difficult to quantify.