LEG 100 UNIT TWO MILESTONE BUSINESS LAW
DISTINCTION LEVEL SOLVED 2026
◉ Select the example that is inconsistent with the provisions of the UCC
for contract remedies for a seller's breach of contract. Answer: The sales
contract for a lumber mill that sells building materials includes a
liquidated damages clause for the amount of $50 million in the event of
a breach of contract.
◉ The purpose of contracts is __________. Answer: to facilitate
economic transactions between individuals
◉ Cynthia orders 100 shirts in a variety of colors for her screenprinting
business from Juan, a shirt supplier. After Juan ships the shirts, Cynthia
calls him to inform him of her insolvency. The box of shirts is currently
in transit and will be delivered by the postal service tomorrow.
What remedy does Juan have in this scenario? Answer: Juan may stop
delivery of the box by the post service, upon which time he may pursue
a variety of remedies to recover his damages.
◉ Which of the following is an example of a voidable contract? Answer:
A 28-year-old adult forms a written contract with an able-bodied and
competent 17-year-old neighbor to cut her lawn for $200 per week.
, ◉ Heidi purchases an original work by one of her favorite sculptors
from an art dealer for $8,000. When the sculpture is delivered, Heidi has
it inspected by an art appraiser, who informs her that the sculpture is a
fake. When Heidi calls the art dealer to tell him the news, he is honestly
shocked and appalled.
What remedy does Heidi have in this scenario? Answer: Heidi is entitled
to recover the purchase price of the sculpture, as well as the money she
spent to have the sculpture appraised.
◉ An adult climbs over a fence onto a neighbor's property and falls into
the pool, which is also surrounded by a fence.
Assuming the adult is injured in a legally recognizable way, is the
neighbor liable for negligence if the adult then sues? Answer: No,
because the neighbor exercised a reasonable degree of care by fencing in
her property and her pool.
◉ In which scenario would the non-breaching party lose the opportunity
to avoid or limit losses? Answer: An office supply store continues to
ship printer paper to a business that it knows has closed.
◉ Select the statement that is true of current products liability law, rather
than consumer law prior to the 20th century. Answer: It is an important
way of ensuring consumer product safety.
DISTINCTION LEVEL SOLVED 2026
◉ Select the example that is inconsistent with the provisions of the UCC
for contract remedies for a seller's breach of contract. Answer: The sales
contract for a lumber mill that sells building materials includes a
liquidated damages clause for the amount of $50 million in the event of
a breach of contract.
◉ The purpose of contracts is __________. Answer: to facilitate
economic transactions between individuals
◉ Cynthia orders 100 shirts in a variety of colors for her screenprinting
business from Juan, a shirt supplier. After Juan ships the shirts, Cynthia
calls him to inform him of her insolvency. The box of shirts is currently
in transit and will be delivered by the postal service tomorrow.
What remedy does Juan have in this scenario? Answer: Juan may stop
delivery of the box by the post service, upon which time he may pursue
a variety of remedies to recover his damages.
◉ Which of the following is an example of a voidable contract? Answer:
A 28-year-old adult forms a written contract with an able-bodied and
competent 17-year-old neighbor to cut her lawn for $200 per week.
, ◉ Heidi purchases an original work by one of her favorite sculptors
from an art dealer for $8,000. When the sculpture is delivered, Heidi has
it inspected by an art appraiser, who informs her that the sculpture is a
fake. When Heidi calls the art dealer to tell him the news, he is honestly
shocked and appalled.
What remedy does Heidi have in this scenario? Answer: Heidi is entitled
to recover the purchase price of the sculpture, as well as the money she
spent to have the sculpture appraised.
◉ An adult climbs over a fence onto a neighbor's property and falls into
the pool, which is also surrounded by a fence.
Assuming the adult is injured in a legally recognizable way, is the
neighbor liable for negligence if the adult then sues? Answer: No,
because the neighbor exercised a reasonable degree of care by fencing in
her property and her pool.
◉ In which scenario would the non-breaching party lose the opportunity
to avoid or limit losses? Answer: An office supply store continues to
ship printer paper to a business that it knows has closed.
◉ Select the statement that is true of current products liability law, rather
than consumer law prior to the 20th century. Answer: It is an important
way of ensuring consumer product safety.
