midterm quiz practice

Question 1

Builder negligently misread the address of his work order and installed a new underground sprinkler system on the wrong commercial property. He pulled out a flower bed, which will cost $1,500 to replace. The value of the new sprinkler system is $2,500. When the property owner files suit, seeking damages, which rule best supports Builder’s argument that the court should dismiss the case?
a. the credit for benefit rule
b. the collateral source rule
c. the pure economic loss rule
d. the rule of avoidable consequences

Answer 1

a. the credit for benefit rule

Question 2

Road Crew negligently cut through a water main, which flooded the streets surrounding Rita’s neighborhood. Rita was stuck in her house for a full week before she was rescued and lost $700 in wages. What is the best basis for Road Crew’s argument that it is not liable to pay damages for the lost wages?

1. The collateral source rule.
2. The pure economic loss rule.
3. The rule of avoidable consequences.
4. The rule that plaintiff must prove damages with sufficient certainty to recover.

Answer 2

2. the pure economic loss rule

Question 3

A teenager walked across a corner of a landowner’s yard repeatedly on his way home from school. One day the landowner saw the teenager and asked him not to enter the property again. The teenager said he did not realize that the landowner owned that corner of land and agreed not to enter the property again. Not believing that the teenager will stop, the landowner has now threatened a lawsuit alleging trespass against the teenager. Which of the following is true of the damages the landowner may possibly obtain?

1. The landowner will not receive any damages because the teenager did not know that he was trespassing.
2. The landowner will not receive any damages unless she can prove that the teenager’s entry onto the property caused actual damage to it.
3. The landowner will receive both nominal damages and punitive damages.
4. The landowner will not receive punitive damages because the teenager’s conduct does not meet the standard.

Answer 3

4. The landowner will not receive punitive damages because the teenager’s conduct does not meet the standard.

Question 4

Plaintiff recovered $5,000 in compensatory damages and $20,000 in punitive damages from Defendant for willfully and repeatedly riding his bike over her fragile wetlands property. State and federal agencies impose fines from $5,000 up to $50,000 for similar conduct. Assume the compensatory damages award is supported by the evidence, will the appeals court uphold the punitive damages award?

1. Likely yes.
2. Likely no, because the U.S. Supreme Court’s “reprehensibility” factor is not met.
3. Likely no, because the U.S. Supreme Court’s “ratio” factor is not met.
4. Likely no, because the U.S. Supreme Court’s “comparable sanctions” factor is not met.

Answer 4

1. Likely yes.

Question 5

Which of the following types of damages must a jury reduce to present value?

1. Pain and suffering.
2. Medical expenses incurred up to the trial date.
3. Wages lost because the tort caused a temporary injury that is cured by the trial date.
4. Wages lost because the tort caused a permanent disability.

Answer 5

4. Wages lost because the tort caused a permanent disability.

Question 6

Kate camped on John’s property, built a fire and left hastily in the morning, without extinguishing her campfire. John’s ski cabin burned down, with all his ski clothes in it. The jury has found Kate to have been negligent and will award damages for the cabin and the destroyed clothing. John has introduced evidence that the replacement value new of his brand name ski clothes is $10,000 and that they were approximately two years old. Kate has introduced evidence that the cost a used clothing store would have to pay to acquire clothes of the same type and condition as John’s is $400, and that the cost John would have to pay to replace ski clothes like his own (brand name but two years old) is $1,000.

What is the likely amount of damages that a jury will award?

1. $ 400 (the cost a used clothing store would have to pay to acquire similar ski clothes in the same condition as they were when they were destroyed).
2. $1,000 (the cost John would have to pay to replace similar ski clothes in the same condition as they were when they were destroyed).
3. $10,000 (the cost to replace similar ski clothes new).
4. Some amount between $1,000 and $10,000, which the jury determines to represent the actual value to John of the ski clothes at the time they were destroyed.

Answer 6

4. Some amount between $1,000 and $10,000, which the jury determines to represent the actual value to John of the ski clothes at the time they were destroyed.

Question 7

Defendant negligently destroyed a car that belonged to Plaintiff. The damaged car has no salvage value. Plaintiff purchased the car for $13,000 eight years ago. At the time that it was destroyed, the car’s market value had depreciated to $5,000. A new car which is similar will cost $25,000 today. What is the damages recovery that Plaintiff is most likely to receive?

1. The original cost of the damaged car ($13,000).
2. The depreciated value of the old car at the time of its destruction ($5,000).
3. The cost of a new car ($25,000) less the depreciated value of the old machine at the time of its destruction ($5,000), for a recovery of $20,000.
4. The cost of a new car ($25,000).

Answer 7

2. The depreciated value of the old car at the time of its destruction ($5,000).

Question 8

A man drives his own car for a rideshare company and is paid an average of $200 per day. A motorist hit the car while it was parked, causing damages that took two weeks to repair. In addition to the cost of repair, what damages is the man most likely to obtain from the motorist for the time he did not have his car because it was being repaired?

1. The cost of renting a similar car.
2. The cost of renting a similar car and $200 per day in lost pay.
3. Nothing because it is pure economic loss.
4. Two weeks of interest calculated by the average treasury bond rate multiplied by the value of his car.

Answer 8

1. The cost of renting a similar car.

Question 9

A number of federal circuits, including the Ninth Circuit, use both the traditional and sliding scale tests to determine whether to issue a short-term injunction. Which party would most benefit from a court’s use of the sliding scale test at a temporary restraining order hearing?

1. A party with a slam-dunk case on the merits.
2. A party whose deed is ambiguous as to the boundary line of her property, but whose home located on the disputed part of the property will be destroyed by a construction crew before the end of the next week absent a TRO.
3. A party that will have to spend a great deal of money to replace a shipment of automobile parts absent a TRO.
4. A party who can show that the defendant’s conduct may cause great personal injury, but who cannot show that the great injury is likely to occur, absent the TRO.

Answer 9

2. A party whose deed is ambiguous as to the boundary line of her property, but whose home located on the disputed part of the property will be destroyed by a construction crew before the end of the next week absent a TRO.

Question 10

Veiga and Rorf make money by selling appliances at highly inflated prices to senior citizens. Veiga makes the initial calls, and once the senior citizens “takes the bait,” Rorf seals the deal and collects the payment. Veiga has now discovered that Rorf has been delivering only 30% of the proceeds, and pocketing 70% for himself in violation of the 50/50 split set out in their partnership agreement. Veiga has filed suit against Rorf, seeking a preliminary injunction to prohibit Rorf from breaching the terms of the partnership agreement. If the court denies the preliminary injunction, what is the most likely reason?

1. Veiga has not come into court with clean hands.
2. Veiga is unable to show a substantial likelihood of success on the merits.
3. Veiga is estopped from claiming a violation of the partnership agreement because he chose to go into business with Rorf.
4. Because Veiga works closely with Rorf, he should have known about the violation and is barred from obtaining a preliminary injunction because he should have filed suit sooner.

Answer 10

1. Veiga has not come into court with clean hands.

Question 11

Zac gets a preliminary injunction, which Walter must obey. Walter introduces credible evidence that he will suffer $20,000 per month in damages because of the injunction. The court sets the permanent injunction hearing for six months later, and sets the bond at $100,000. At the permanent injunction hearing, Walter prevails and the court dismisses Zac’s claim. When Walter looks back through his records, he realizes that he only incurred $60,000 in damages due to the injunction. How much can Walter recover from the bond?

1. Nothing, because the amount of bond exceeds his losses.
2. $60,000, so long as he can produce evidence proving this amount of loss at a bond hearing.
3. $100,000, so long as he can prove that he suffered actual losses due to the injunction.
4. $100,000, without a hearing because the bond amount determines the amount of recovery.

Answer 11

2. $60,000, so long as he can produce evidence proving this amount of loss at a bond hearing.

Question 12

In which situation is a federal court most likely to find a TRO appealable?

1. It has lasted for more than a month without the restrained party’s consent.
2. The plaintiff cannot show a substantial likelihood of succeeding on the merits of the case.
3. The TRO imposes great hardship on the defendant when the hardship the plaintiff would suffer absent the TRO is very little.
4. The public interest weighs in favor of lifting the TRO.

Answer 12

1. It has lasted for more than a month without the restrained party’s consent.

Question 13

Which of the following is true of a stay pending appeal?

1. A party may fail to obtain a preliminary injunction, because it cannot show sufficient irreparable injury, but nevertheless be able to show sufficient irreparable injury to cause a court to grant an injunction pending appeal.
2. Only a district court may grant a stay pending appeal.
3. Only an appellate court may grant a stay pending appeal.
4. The moving party need not show irreparable injury to obtain a stay pending appeal.

Answer 13

1. A party may fail to obtain a preliminary injunction, because it cannot show sufficient irreparable injury, but nevertheless be able to show sufficient irreparable injury to cause a court to grant an injunction pending appeal.

Question 14

Yada just ran into Cole in the elevator of the building in which they both work. Cole represents a chain of fast food restaurants that Yada’s clients, a group of animal rights advocates, have been boycotting for the last three months because of how the chicken used in its meals are treated. Recently, the consumer group has been posting videos on social media allegedly showing cruel chicken treatment practices by the fast food chain’s suppliers. In the elevator, Cole said, “We are going to file for a preliminary injunction to stop your clients’ lies!” Yada has weekend plans and needs to know how fast she will need to respond to the filing. What kind of notice is required before a preliminary injunction hearing?

1. No notice.
2. Informal notice.
3. Formal statutory notice.
4. Published notice to anyone who might be bound.

Answer 14

3. Formal statutory notice.

Question 15

Harry has successfully obtained a temporary restraining order from a federal district court that prohibits Elsa from beginning construction on the parking lot for her shopping mall until she completes the environmental impact form required by federal statute. Elsa estimates that she will lost $1,000 per day that she is unable to follow through with her construction plans. Which of the following is true of Elsa’s options?

1. She may appeal it immediately so long as she can prove that $1,000 is a great hardship.
2. She may disobey it if it was issued ex parte.
3. She may not move to amend the terms of the TRO because it lasts for such a short time.
4. Unless she consents, the TRO may last for a maximum of 28 days.

Answer 15

1. She may appeal it immediately so long as she can prove that $1,000 is a great hardship.

Question 16

Assume Akhil gets a preliminary injunction, which Brynn must obey. Brynn introduces credible evidence that he will suffer $10,000 per month in damages because of the injunction. The court sets the permanent injunction hearing for six months later, and sets the bond at $30,000. The court of appeals affirms the preliminary injunction. After three months, on Brynn’s motion, the trial court increases the bond amount to $45,000. Brynn wins at trial. He introduces evidence showing that he in fact incurred the $60,000 in damages, just as he had anticipated. In jurisdictions that follow the majority rule, how much can he recover from the bond?

1. None
2. $30,000
3. $45,000
4. $60,000

Answer 16

3. $45,000

Question 17

KiKi owns vacation property and plans to build her dream home on it some day. She knows her neighbor Meena by sight and a hand wave. Two months ago, on one of her infrequent visits, KiKi noticed Meena eyeing an area along of the boundary of the two properties. A man with a clipboard was at her side. The truck parked in the dirt drive said Mark’s Construction. KiKi made a mental note to ask Meena about her plans, but left the property and forgot. One month ago, Kiki drove by the property and noticed a cement truck in Meena’s driveway. A day ago, Kiki arrived at her property and discovered construction ongoing to build a tennis court that will extend 8 feet onto her property. KiKi wants to halt the building immediately. Which of the following is true of her remedies?

1. Because the property is for vacation only, Kiki will not be able to show a sufficiently important interest to obtain a temporary restraining order.
2. If Kiki does not file an application for a temporary restraining order immediately, she may lose the ability to obtain a remedy to remove the tennis court from her property.
3. Kiki has lost the ability to obtain a remedy that will remove the tennis court from her property because she did not seek one immediately after seeking the construction truck.
4. Because of the notice requirement, Kiki can obtain a preliminary injunction but not a temporary restraining order to stop the building.

Answer 17

2. If Kiki does not file an application for a temporary restraining order immediately, she may lose the ability to obtain a remedy to remove the tennis court from her property.

Question 18

Pickleball Pros just filed a complaint in a California court seeking $50,000, which represents the extra cost it had to pay for pickleballs after its usual supplier breached and did not deliver the summer shipment of pickleballs. Assume Pickleball Pros’ gets a verdict for that amount at trial, which of the following is most likely true of any further adjustments to the damages award?

1. The damages award must be reduced to present value.
2. The damages award should be supplemented with an award of prejudgment interest and post-judgment interest.
3. The damages award should be supplemented with an award of post-judgment interest only because the amount of damages was not sufficiently certain, prior to judgment.
4. The damages award should not be supplemented

Answer 18

2. The damages award should be supplemented with an award of prejudgment interest and post-judgment interest.

Question 19

The Waves soccer team operated in the City of Seafront for forty years. Ten years ago Seafront built Waves Stadium, where the soccer team plays all its home games. The Waves are a noticeable source of civic pride among Seafront residents, and draw tourists from around the state. Income from season tickets and concession licensing brings in significant revenue to Seafront, which does not have a large business tax base. Two years ago, Seafront finalized a ten-year lease with the Waves to play in the stadium. Recently, Marcos, the Waves’ owner, announced that the team would be moving to Northshore, a slightly larger city in the same state. Seafront’s city council, anticipating adverse reputational and economic effects from the departure, has filed a breach of contract action against the Waves, seeking short-term injunctions to prevent the Waves from moving and specific performance of the lease agreement. Is a court likely to grant specific performance of the lease to Seafront?

1. Yes, because Seafront can show a breach of contract, which entitles it to choose specific performance as the remedy.
2. Yes, because Seafront has no adequate legal remedy.
3. No, because the burden of supervision on the court will be too great.
4. No, because there is no mutuality of remedy between Seafront and the team.

Answer 19

2. Yes, because Seafront has no adequate legal remedy.

Question 20

A new stadium is built in Fanville as home to the new Fanville Lions major league football team. It has met all zoning requirements. However, attendance is greater than anticipated. As a result, the noise, garbage and congestion are excessive and burdensome to the local residences. The residents sue on a nuisance theory. Assuming they prevail on liability, what is the most likely appropriate remedy?

1. Temporary damages.
2. Permanent damages.
3. Permanent injunction requiring that the football stadium operators take measures to reduce the noise, garbage and congestion.
4. Permanent injunction ordering the football stadium to cease operations.

Answer 20

3. Permanent injunction requiring that the football stadium operators take measures to reduce the noise, garbage and congestion.

Question 21

Andy and Keith are neighbors. Keith’s dog continuously barks throughout the night. The dog’s barking prevents Andy and his family from sleeping at night. Andy has talked with Keith on several occasions about the disturbance. Keith did not take any measures to prevent the dog from barking throughout the night. Andy has sued Keith to enjoin the disturbance. The likely result is that an injunction will be:

1. Denied, because there is an adequate remedy at law.
2. Denied, because of the difficulty of supervision.
3. Granted, in the form of a prohibitory injunction.
4. Granted, in the form of a mandatory injunction.

Answer 21

3. Granted, in the form of a prohibitory injunction.

Question 22

Which of the following most likely has a valid unclean hands defense?

1. Defendant toothpaste company, in an action against it seeking an injunction against deceptive advertising, shows that Plaintiff toothpaste company is running Google ads that falsely claim the paste kills the flu virus.
2. Defendant abortion protester in an action seeking an injunction against his continuing acts of trespass, shows that Plaintiff doctor threw him to the ground when he arrived home to find Defendant and his fellow protesters occupying his lawn.
3. Defendant delivery company, in an action seeking specific performance of a contract requiring it to meet timeliness and geograpical scope requirements, shows that Plaintiff newspaper company deliberately inflates its circulation numbers to appeal to advertisers.
4. Defendant employer shows that Plaintiff employee, seeking reinstatement under a federal statute, was convicted of income tax evasion.

Answer 22

1. Defendant toothpaste company, in an action against it seeking an injunction against deceptive advertising, shows that Plaintiff toothpaste company is running Google ads that falsely claim the paste kills the flu virus.

Question 23

The pig farm next door to Plaintiff’s house smells so bad that the court finds it to be a nuisance. Which of the following is true of the remedies Plaintiff is likely to receive?

1. Plaintiff may receive either an injunction or damages, but not both.
2. Plaintiff may not receive an injunction because she has an adequate legal remedy.
3. Plaintiff may not receive damages because she has an inadequate legal remedy.
4. Plaintiff may receive an injunction that does not require the pig farm to cease operating.

Answer 23

4. Plaintiff may receive an injunction that does not require the pig farm to cease operating.

Question 24

Stuart owns a recording studio. Tyzek lives next door. During the first year of operation, Tyzek called the police ten times to stop late-night recording sessions because the music was disturbing his sleep in violation of a local noise ordinance. Three years ago, Tyzek obtained a court judgment that the loud operation of the studio during nighttime hours was a nuisance. The court granted a permanent injunction prohibiting Stuart from recording between the hours of 9 p.m. and 6 a.m. Stuart, finding that he lost half his business because of the restriction, has invested in state-of-the-art soundproofing, which has almost completely eliminated the noise emanating from the studio. Tyzek, however, has said that he will move to hold Stuart in contempt if he records in violation of the injunction, regardless of the fact that the noise will not disturb him. The city council recently voted to lift the threshold noise level of its local ordinance. Which of the following is true of Stuart’s options?

1. His only option is to bargain with Tyzek until they reach a price Tyzek will accept to lift the injunction.
2. He will likely convince the court to modify or terminate the injunction based on the change in the city ordinance.
3. He will likely convince the court to modify or terminate the injunction based on the change in noise level outside the house due to the soundproofing.
4. He will likely convince the court to modify or terminate the injunction so long as he agrees to post a bond to cover the damages Tyzek will suffer because of any noise from the nighttime operation of the studio.

Answer 24

3. He will likely convince the court to modify or terminate the injunction based on the change in noise level outside the house due to the soundproofing.

Question 25

A man, recognizing that he is about to fall into bankruptcy and not wanting the family homestead to be sold to the benefit of his creditors, sells his property to his brother, who is aware of the man’s situation. The two men agree that once the man is free of the bankruptcy, the brother will reconvey the property. Following the conclusion of his bankruptcy, the man asks the brother to reconvey the property. The brother refuses. The man sues for a court order directing the brother to reconvey the property. The brother raises the defense of unclean hands because the man conveyed the property to defraud his creditors. What result is likely?

1. Unclean hands is not a proper defense as the the man has a remedy at law.
2. The defense of unclean hands will not be allowed because the brother is not an innocent party.
3. The court will allow unclean hands because the man’s conduct is directly related to the cause of action.
4. The court will allow the use of the unclean hands doctrine because courts do not grant equitable remedies to plaintiffs who have engaged in bad conduct.

Answer 25

3. The court will allow unclean hands because the man’s conduct is directly related to the cause of action.

Question 26

Which of the following is true of both a preliminary injunction and a permanent injunction?

1. Plaintiff must post a bond to obtain them.
2. Plaintiff must show either a likelihood of success on the merits or substantial questions on the merits to obtain them.
3. The defense of laches may cause a court not to grant them.
4. They may last no longer than 12 months.

Answer 26

3. The defense of laches may cause a court not to grant them

Question 27

Nita seeks an injunction requiring removal of a ten by ten foot square portion of her neighbor’s home addition, which is located on Nita’s property. Which of the following is true, if the neighbors can establish a successful defense of laches?

1. The court will find that Nita cannot succeed on the merits of her trespass cause of action.
2. The court will find that laches bars the remedy of injunction, but may award damages for the permanent trespass.
3. The court will find that laches bars the remedy of damages, but may award an injunction requiring removal of the building.
4. The court will find that laches bars both the remedies of injunction and damages and will give Nita no remedy, even though she can successfully show a trespass.

Answer 27

2. The court will find that laches bars the remedy of injunction, but may award damages for the permanent trespass.

Question 28

Mavis offered to help her friend, Nyla, paint her house, so Nyla would be available for a trip the two had planned the following weekend. The work was far more difficult than Mavis had anticipated, involving a lot of scraping of old paint and new paint that failed to adhere properly. The women ended up working through both weekends. Mavis lost her deposit on the vacation and failed to obtain the rest and relaxation she had anticipated. Frustrated, Mavis has filed suit against Nyla seeking a legal unjust enrichment/restitution recovery. What result?

1. Mavis will receive restitution in the amount of her painting services.
2. Mavis will receive restitution in the amount of the vacation deposit she lost.
3. Mavis will be denied restitution because she was a volunteer.
4. Mavis will be denied restitution because Nyla did not receive a benefit.

Answer 28

3. Mavis will be denied restitution because she was a volunteer.

Question 29

Lucky opened a small brown box addressed to her and discovered an I-Phone 5. She stuck it in her pocket and, giddy with the thrill of the mystery gift, accidentally walked into her pool. The I-Phone is ruined and Apple wants her to pay its $500 value. It was not a gift. Apple had sent the phone to her by mistake. Which of the following is true?

1. Apple cannot recover the $500 because it made the mistake.
2. Apple cannot recover the $500 because Lucky was not unjustly enriched.
3. Apple cannot recover the $500 because Lucky changed her position, believing that the phone was hers.
4. Apple can recover the $500.

Answer 29

3. Apple cannot recover the $500 because Lucky changed her position, believing that the phone was hers.

Question 30

Xee rented office space for her new design business. It came unfurnished, but Xee discovered a photocopy machine in the closet. She pulled it out and used it for six months before Landlord discovered that she was using it. What recovery is available for Landlord?

1. Damages only.
2. Legal unjust enrichment only.
3. Damages or legal unjust enrichment, but not both.
4. Damages and legal unjust enrichment.

Answer 30

3. Damages or legal unjust enrichment, but not both.

Question 31

Eureka checked her bank balance a month ago and was surprised to find it was at $1,100 rather than the $100 she had expected. Her father had said he planned to cut off her weekly bank-transfers of $250 because she had gotten a tattoo. Figuring that he had changed his mind, Eureka spent the money. Now, the bank has sent her a Notice of Error, and requested repayment of the money. Which of the following, if true, is most likely to support a valid defense for Eureka?

1. She spent the money on daily massages because she had been stressed and hurting.
2. She spent the money on an exercise bike because she had been out of shape.
3. She gave the money to her roommate’s sister, to pay off a loan for school textbooks.
4. She bought some pricey clothes because she had been suffered from low self-image.

Answer 31

1. She spent the money on daily massages because she had been stressed and hurting.

Question 32

Bob and Theresa own homes next to each other. Bob has been saving money for six months to plant a hedge fence between the houses. Not only will this benefit his privacy, but it will increase the value of his house. One day Theresa approaches Bob while he is mowing the lawn and asks him if he would have any objections to her planting a hedge between their property, specifically stating that she would not if Bob objected. Bob replied that he certainly did not object. After the hedge is in place, Theresa learns of Bob’s saving money to do the exact same thing and also of his property’s increased value. Theresa sues under unjust enrichment for the benefit of Bob’s increased property value for restitution. Will Theresa likely succeed?

1. Yes. Bob knew of the benefit and did not object. Therefore, he cannot claim Theresa as a volunteer.
2. Yes. Bob’s benefit was tangible in that he was able to keep the money that he had been saving to build the hedge.
3. No. Theresa cannot recover restitution for benefits for work that is of primary benefit to her.
4. No. Bob did not agree to pay for the benefits of her work.

Answer 32

4. No. Bob did not agree to pay for the benefits of her work.

Question 33

Gus presented a coupon to Car Dealership for $1,000 off a new Dodge Dart. Dealership gave Gus the discount and submitted the coupon to Corporate Dodge, which issued Dealership a $1,000 check. Corporate Dodge has now realized that the coupon was a fake. It did not run a coupon promotion in that part of the country. Corporate Dodge now wants to recover the $1,000 from Dealership. What result?

1. Corporate Dodge may recover the $1,000 from Dealership because Dealership was unjustly enriched.
2. Corporate Dodge may recover the $1,000 because it never agreed to pay for the fake coupon.
3. Corporate Dodge may not recover the $1,000 from Dealership because Dealership accepted the payment as a discharge for value.
4. Corporate Dodge may not recover the $1,000 from dealership because Corporate Dodge was negligent.

Answer 33

3. Corporate Dodge may not recover the $1,000 from Dealership because Dealership accepted the payment as a discharge for value.

Question 34

Scottie comes out of work one day to find his once very disgusting and dirty Dodge Durango all shiny and clean. Actually, it is so clean that it looks brand new. Of course, Scottie is very happy. However, before he can even get in his car and take off, Angie, an expert car cleaner and detailer, asks him to pay up. He says, “No Way, Jose!” Angie files a suit for unjust enrichment. Which of the following factual arguments made by Angie is most likely to support her claim in court?

1. Angie argues that she went ahead and cleaned Scottie’s Dodge Durango because she overhead him tell a friend that he was going to hire someone that day to do it
2. Angie argues that while she was cleaning his car Scottie looked out the window of his office and smiled at her.
3. Angie argues that she was hired to clean another owner’s Dodge Durango and she made a mistake by cleaning Scottie’s Durango and that because of this it is unfair that he should be able to have a clean car for free.
4. Angie argues that Scottie’s Dodge Durango was so disgusting and dirty that she just knew he would want it cleaned, therefore, she went ahead and cleaned it for the low price of $19.95.

Answer 34

2. Angie argues that while she was cleaning his car Scottie looked out the window of his office and smiled at her.

Question 35

Grandpa paid $15,000 to Kim, thinking that his poor driving had been the causee of the accident that had damaged her car. Several weeks later, the police called and told him that their investigation had revealed that a huge rut in Gated Community’s road caused the accident. Kim won’t give the money back. What remedy is available to Grandpa against Gated Community?

1. Constructive trust.
2. Equitable lien.
3. Accounting.
4. Subrogation.

Answer 35

4. Subrogation.

Question 36

Oscar stole $20,000 from Karen and put it in a pile on his desk. He added $10,000 from his cashed paycheck and $5,000 that Mom gave him for his birthday. He took $20,000 out of the pile, intending to give it back to Karen, but spent it all on a wild weekend in Vegas instead. He returned, and put $10,000 he’d received from selling his old car in the pile. Now, Karen has filed a lawsuit seeking a constructive trust. What is the maximum amount a court will award?

1. $15,000.
2. $20,000.
3. $25,000.
4. $35,000.

Answer 36

1. $15,000.

Question 37

Defendant embezzled $1,000 from his Employer and deposited the money in a bank account with $3,000 of his own money. He withdrew $800 and spent it on a trip to the Cotton Bowl. He then withdrew $2,000 and invested it in Amazon.com stock, which now has a value of $1,600. Only $1,200 remains in the bank account (where it draws no interest). What is the maximum amount of money that Employer can recover from Defendant?

1. $200, because the remaining $800 spent on the Cotton Bowl ticket cannot be traced.
2. $800, representing half the current value of the Amazon stock.
3. $1,000, via a constructive trust on that portion of the money left in the bank account.
4. $1,200, via a constructive trust on the entire amount of money left in the bank account.

Answer 37

3. $1,000, via a constructive trust on that portion of the money left in the bank account.

Question 38

Earl stole $2,000 from Fran. In which of the following circumstances would Fran prefer a constructive trust to a tort damages remedy?

1. Earl bought a used car with the money, which he still possesses.
2. Earl put the money in his bank account, and has not removed any of it.
3. Earl sent threats to Fran before stealing the money, saying he hated her and wanted to see her become poor and hungry.
4. Earl bought $2,000 of stock with the money, which is now worth $2,500

Answer 38

4. Earl bought $2,000 of stock with the money, which is now worth $2,500

Question 39

Ivor embezzled $200,000 from his employer. He gave $100,000 to his girlfriend, Jade, who was not aware of the embezzlement. Jade purchased a Mercedes SUV for $60,000 and a lump of gold for the remaining $40,000. Ivor cannot be found. The combined value of the SUV and the gold is now $60,000. When the employer sues Jade for an equitable unjust enrichment remedy, what is the maximum value employer will receive as a secured equitable remedy?

1. $200,000.
2. $100,000.
3. $90,000.
4. $60,000.

Answer 39

4. $60,000.

Question 40

Glynn bought a parcel of property and told Herman that he owned half of it. Glynn built a restaurant on the property and is currently operating it profitably. Herman then spent his own money to build a deck onto the restaurant and he paid the property taxes. Which of the following remedies is most likely available to Herman?

1. A constructive trust on the parcel of property for half its current value.
2. An equitable lien on the property for the value of the deck and the taxes.
3. An action for replevin.
4. Damages based on tort or breach of contract.

Answer 40

2. An equitable lien on the property for the value of the deck and the taxes.

Question 41

Frye took $5,000 of Kim’s money and used the entire amount to buy a car. In which of the following circumstances is an equitable lien on the car Frye’s best remedy?

1. The car is a vintage model with a value that will increase as it ages.
2. The car is a nondescript Toyota Corolla, and Frye has no other assets.
3. The car is a nondescript Toyota Corolla, and Frye has $100,000 in his bank account and owns a house.
4. An equitable lien is the only available remedy when a defendant uses stolen funds to buy a piece of personal property.

Answer 41

3. The car is a nondescript Toyota Corolla, and Frye has $100,000 in his bank account and owns a house.

Question 42

Jon steals $10,000 from Sue while working for her during the summer. Jon uses the money by putting it into a high technology stock that he hears is developing a new superconductor. Jon gets lucky and the company does in fact prove to have developed a new superconductor. The stock rises to the price of $50,000. Jon decides to sell the stock. He takes the proceeds and buys a $40,000 sports car and deposits $10,000 in the bank. Select the most appropriate remedy Sue has against Jon.

1. Legal restitution for the $10,000 in the bank account only.
2. Constructive trust on the car and the $10,000.
3. Equitable lien against the $40,000 sports car.
4. Subrogation against the assets of Jon.

Answer 42

2. Constructive trust on the car and the $10,000.

Question 43

Brian and Jeff are partners in a very successful casino. Due to their business endeavor, large amounts of cash are kept in their office, and each partner is paid in cash. Brian keeps his cash in a safe in his office. Jeff had an investment opportunity and was short on cash, and he misappropriated $50,000 from Brian’s safe. Jeff immediately purchased Blueacre for $25,000. It is unimproved real estate that is adjacent to his residential property. He then spent $20,000 to install a pool in the backyard of his residential property. Finally, Jeff bought $5,000 worth of XYZ Stock. When Brian discovered the misappropriation a year later, he sued Jeff in equity. Blueacre has declined $2,000 in value; the stocks have increased in value by $1,000; and Jeff is still living at his residence and enjoying his pool. Which of the following forms of relief are likely to be available to Brian?

1. A constructive trust on Jeff’s residential property for $20,000.
2. A constructive trust on Jeff’s residential property for $20,000, a constructive trust on Blueacre for $20,000, and a constructive trust on the stock.
3. A constructive trust on Blueacre for $23,000 plus $2,000 for a deficiency judgment, an equitable lien for $20,000 on Jeff’s residential property and a constructive trust on the stock.
4. Only a damages judgment for $50,000.

Answer 43

3. A constructive trust on Blueacre for $23,000 plus $2,000 for a deficiency judgment, an equitable lien for $20,000 on Jeff’s residential property and a constructive trust on the stock.