ACCT 2700 FINAL UPDATED EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔True or false: There are no exceptions to privity of contract. - ✔✔False
✔✔True or false: An example of a legal assignment is PNC Bank transferring a
customer's mortgage to Regions Bank. - ✔✔True
✔✔Jennifer contracts with Dr. Smith (a world-renownedsurgical veterinarian) to perform
a surgery on her prizeshow beagle. Dr. Smith delegates the surgery to her just-out-of
vet school associate, Dr. Jones. Is this legal? - ✔✔No, because Jennifer placed special
trust in Dr. Smith basedon personal skill and talents
✔✔True or false: third party beneficiaries can sue only if they are intended beneficiaries
- ✔✔True
✔✔True or false: to determine if a third party is intended or incidental beneficiary, courts
use a reasonable person standard and look at intent from contract and other
surrounding circumstances. - ✔✔True
✔✔True or false: A condition precedent is a condition that must occur or be fulfilled
before a party's performance is required. - ✔✔True
✔✔True or false: An example of a condition precedent is an employment contract for a
recent law graduate hired by a firm that the graduate must pass the bar or employment
will terminate. - ✔✔False
✔✔ABC Builders agreed to construct a home for the Jones family. Original contract
price was $180,000.00. The Jones family paid a total of $165,000.00.They withheld the
final $15,000.00 payment because of alleged deficiencies in the work, delays in
construction, and ABC Builders' failure to complete the home. The home did not pass
inspections and the Joneses had to hire other subcontractors to complete the work. -
✔✔ABC Builders cannot recover because they didn't perform in good faith,performance
varied greatly from performance promised in contract, and the Jones family did not get
the same benefits promised in contract
✔✔Jim and Patty have a contract for Jim to replace Patty's carpet with hardwood
flooring no later than November 24 (the day before Thanksgiving). The contract says
time is of the essence. On November 20, Jim tells Patty he is not going to come before
November 24 and replace the carpet. This is: - ✔✔Anticipatory Repudiation
✔✔Which of the following is a discharge by operation of law? - ✔✔Impossibility of
Performance
Statutes of Limitation
, Bankruptcy
✔✔True or false: Damages are an equitable remedy. - ✔✔True
✔✔True or false: The goal of awarding damages is to make the non-breaching party
whole. - ✔✔True
✔✔Which of the following is not a type of damages?
A. Compensatory
B. Consequential
C. Punitive
D. None are correct. - ✔✔D. None are correct
✔✔Northcutt Realty has a lease for an apartment with Felicity.Felicity decides to move
out of the apartment seven months before the lease expires. Which of the following is
true?
A. Northcutt Realty must mitigate its damages by trying to find a new tenant
B. Felicity has breached the contract with Northcutt Realty and Northcutt Realty can sue
for damages.
C. The amount Felicity must pay Northcutt Realty as compensatory damages is known
as the standard measure
D. All are correct. - ✔✔D. All are correct.
✔✔John contracts with Bill to buy 4 acres of land in Auburn and tenders $1,500.00
earnest money with the sales contract. Bill subsequently tells John he is no longer going
to sell the land to John. Which of the following is true?
A. John can receive compensatory damages for the $1,500 he paid Bill as earnest
money
B. John can demand specific performance and be awarded the 4 acres of land
C. John can't do anything because Bill rescinded the contract
D. None are correct - ✔✔B. John can demand specific performance and be awarded
the 4 acres of land
✔✔True or false: In civil law, the party who brings a suit is the
the state - ✔✔False
✔✔Mens rea:
A. Means wrongful mental state
B. Is typically required to establish criminal liability
C. Both are correct - ✔✔A. Means wrongful mental state
✔✔Which of the following is not a violent crime?
ANSWERS RATED A+
✔✔True or false: There are no exceptions to privity of contract. - ✔✔False
✔✔True or false: An example of a legal assignment is PNC Bank transferring a
customer's mortgage to Regions Bank. - ✔✔True
✔✔Jennifer contracts with Dr. Smith (a world-renownedsurgical veterinarian) to perform
a surgery on her prizeshow beagle. Dr. Smith delegates the surgery to her just-out-of
vet school associate, Dr. Jones. Is this legal? - ✔✔No, because Jennifer placed special
trust in Dr. Smith basedon personal skill and talents
✔✔True or false: third party beneficiaries can sue only if they are intended beneficiaries
- ✔✔True
✔✔True or false: to determine if a third party is intended or incidental beneficiary, courts
use a reasonable person standard and look at intent from contract and other
surrounding circumstances. - ✔✔True
✔✔True or false: A condition precedent is a condition that must occur or be fulfilled
before a party's performance is required. - ✔✔True
✔✔True or false: An example of a condition precedent is an employment contract for a
recent law graduate hired by a firm that the graduate must pass the bar or employment
will terminate. - ✔✔False
✔✔ABC Builders agreed to construct a home for the Jones family. Original contract
price was $180,000.00. The Jones family paid a total of $165,000.00.They withheld the
final $15,000.00 payment because of alleged deficiencies in the work, delays in
construction, and ABC Builders' failure to complete the home. The home did not pass
inspections and the Joneses had to hire other subcontractors to complete the work. -
✔✔ABC Builders cannot recover because they didn't perform in good faith,performance
varied greatly from performance promised in contract, and the Jones family did not get
the same benefits promised in contract
✔✔Jim and Patty have a contract for Jim to replace Patty's carpet with hardwood
flooring no later than November 24 (the day before Thanksgiving). The contract says
time is of the essence. On November 20, Jim tells Patty he is not going to come before
November 24 and replace the carpet. This is: - ✔✔Anticipatory Repudiation
✔✔Which of the following is a discharge by operation of law? - ✔✔Impossibility of
Performance
Statutes of Limitation
, Bankruptcy
✔✔True or false: Damages are an equitable remedy. - ✔✔True
✔✔True or false: The goal of awarding damages is to make the non-breaching party
whole. - ✔✔True
✔✔Which of the following is not a type of damages?
A. Compensatory
B. Consequential
C. Punitive
D. None are correct. - ✔✔D. None are correct
✔✔Northcutt Realty has a lease for an apartment with Felicity.Felicity decides to move
out of the apartment seven months before the lease expires. Which of the following is
true?
A. Northcutt Realty must mitigate its damages by trying to find a new tenant
B. Felicity has breached the contract with Northcutt Realty and Northcutt Realty can sue
for damages.
C. The amount Felicity must pay Northcutt Realty as compensatory damages is known
as the standard measure
D. All are correct. - ✔✔D. All are correct.
✔✔John contracts with Bill to buy 4 acres of land in Auburn and tenders $1,500.00
earnest money with the sales contract. Bill subsequently tells John he is no longer going
to sell the land to John. Which of the following is true?
A. John can receive compensatory damages for the $1,500 he paid Bill as earnest
money
B. John can demand specific performance and be awarded the 4 acres of land
C. John can't do anything because Bill rescinded the contract
D. None are correct - ✔✔B. John can demand specific performance and be awarded
the 4 acres of land
✔✔True or false: In civil law, the party who brings a suit is the
the state - ✔✔False
✔✔Mens rea:
A. Means wrongful mental state
B. Is typically required to establish criminal liability
C. Both are correct - ✔✔A. Means wrongful mental state
✔✔Which of the following is not a violent crime?
