Chapter 8: Judicial Remedies

Question 1

Remedies at Law

Answer 1

Developed in common law; You are after money

Question 2

Remedies in Equity

Answer 2

Remedies at law inadequate (money doesn’t suffice); Court can fashion remedy; Clean Hands Doctrine

Question 3

Clean Hands Doctrine

Answer 3

In order to get remedies in equity, you can’t have done anything wrong yourself

Question 4

US v. Parlavecchio

Answer 4

Fight over custody of frozen sperm of mobster; Court ruled that in order for the court to use its equitable powers, a party must come into court with clean hands; Wife was not entitled to husband’s sperm

Question 5

Compensatory

Answer 5

Money awarded to compensate a person for losses resulting from another’s wrongs; Restoring a person to status quo through money

Question 6

Compensatory Expenses from Tort (car accident)

Answer 6

Out of pocket expenses (money you lost between yesterday and day of accident), Medical, Lost wages, Property Damage, Pain & Suffering

Question 7

Contract Damages

Answer 7

Put injured person in the same position as if the contract had not been breaches

Question 8

What happens if a person has a store order a computer and then the buyer changes their mind?

Answer 8

No contract damages because the seller still has the computer and can sell it to someone else

Question 9

Is there ever a time when a seller can collect the full contract price?

Answer 9

Only after the goods are sold; Specially made goods

Question 10

Seller’s Damages

Answer 10

Difference between contract price and resale price

Question 11

What happens if the store sells the computer for the same price that the original customer was going to buy it for?

Answer 11

Person who breached the contract owes nothing

Question 12

What happens if the store sells the computer for the less that the original customer was going to buy it for?

Answer 12

Person who breached the contract owes the difference in the price

Question 13

Buyer’s Damages

Answer 13

Difference between the contract price and what you pay when going somewhere else; Cover v. Contract price; Market Value v. Contract price

Question 14

Buyer’s Special Damages

Answer 14

When a buyer loses more than the difference in the contract price

Question 15

What are the limitations to buyer’s special damages?

Answer 15

Limited to when damages are foreseeable, certain, and unavoidable; Dealer must know plans for product

Question 16

Example of Buyer’s Special Damages

Answer 16

Seller fails to sell boat for charter fishing business; Can collect difference you pay for the boat from other seller in addition to the loss of profits from lost time not fishing

Question 17

Punitive

Answer 17

Sum of money with purpose to punish person for outrageous conduct

Question 18

Example of Punitive Damages

Answer 18

Jury awarding large sum of money from Phillip Morris is cigarette case because they hid health facts

Question 19

How are punitive damages determined?

Answer 19

Net worth of defendant; Big companies such as McDonald’s pay much more in damages

Question 20

Nominal

Answer 20

Technically, a wrong has been committed, but so what?; Award of $1

Question 21

Example of Nominal Damages

Answer 21

Rear ending a junker car; USFL and NFL monopoly case

Question 22

Tribial Damages

Answer 22

If you can prove something is a monopoly, multiply the amount awarded by 3

Question 23

Liquidated

Answer 23

Damages awarded by agreement

Question 24

Example of Liquidated

Answer 24

You rent an apartment but change your mind, your liquidated damages are your security deposit that held your lease

Question 25

Mandatory Injunction

Answer 25

A court order directing a person to do something

Question 26

Example of Mandatory Injunction

Answer 26

Court ordering for striking employees to go back to work (school employees)

Question 27

Prohibitory Injunction

Answer 27

A court order directing a person to refrain from doing something

Question 28

Example of Prohibitory Inunction

Answer 28

Restraining order

Question 29

Restitution

Answer 29

Prevent unjust enrichment

Question 30

Example of Restitution

Answer 30

Property B pumping oil from oil reserve that is mostly on Property A; Someone getting rich at your expense

Question 31

How are restitution damages determined?

Answer 31

Determined by the defendant’s gain

Question 32

Reformation

Answer 32

When written agreements fail to express real agreement of parties

Question 33

Example of Reformation

Answer 33

Mistake in price of real estate agreement

Question 34

Rescission

Answer 34

Asking the court to tear up the contract and return the parties to status quo

Question 35

Example of Rescission: Stambovsky v. Ackley

Answer 35

Case of haunted house sold to unknowing people; Court allowed family to rescind contract

Question 36

Declaratory Judgment

Answer 36

Determination of a person’s legal rights; Court reluctant to hear

Question 37

Example of Declaratory Judgment

Answer 37

Proceeds of a life insurance policy left to “my life” instead of a specific person

Question 38

Specific Performance

Answer 38

Forcing a party to go through with a contract; Goods must be unique; Can’t force someone to work

Question 39

What happens if there is a special painting being used for an exhibit but the owner backs out on deal?

Answer 39

Museum can sue for specific performance because there is no adequate remedy at law; Plaintiff stated valid cause of action

Question 40

What happens if Lady Gaga backs out of a performance?

Answer 40

Can’t force a person to work, so could only sue her for monetary damages