Question 1

The Sale of Goods Act applies to provision of services.

Accepted Answer

A) True 
 B)False  False

Question 2

The Carlsons were preparing for a four-day family reunion in their home starting on June 19.On June 15 they ordered a large new dining room table from Levitts Furniture to accommodate the expected relatives.Levitts promised delivery out of their local warehouse three different mornings during the week,but each time they gave feeble reasons why they couldn't do it.On the afternoon of June 18,the Carlsons phoned Levitts,cancelled their order,and demanded their money back.What is the Carlsons' legal remedy?

Accepted Answer

A) damages for breach of warranty 
B) tort damages for wrongful disposition of goods 
C) remedies under consumer protection legislation 
D) rescission for breach of condition 
E) specific performance because of the uniqueness of the situation 
A) damages for breach of warranty 
B) tort damages for wrongful disposition of goods 
C) remedies under consumer protection legislation 
D) rescission for breach of condition 
E) specific performance because of the uniqueness of the situation D

Question 3

John purchases a 2009 Pontiac automobile from Car Dealers Inc.Within three weeks,the car's transmission fails to work.Assuming that the car was not warranted against such an event,under the Sale of Goods Act,the failure of the transmission would amount to a breach of the implied condition of

Accepted Answer

A) description. 
B) merchantable quality. 
C) seller's title. 
D) fitness for purpose. 
E) none of the above 
A) description. 
B) merchantable quality. 
C) seller's title. 
D) fitness for purpose. 
E) none of the above B

Question 4

Risk of loss and title to goods go hand in hand.Explain.

Accepted Answer

Where the contract is silent a

Question 5

Caveat emptor is a worthwhile argument for the seller when

Accepted Answer

A) it is under the scope of Sales of Goods Act. 
B) the goods are not specific. 
C) the goods are not in existence. 
D) the seller has made some misrepresentation. 
E) the seller does not have title. 
A) it is under the scope of Sales of Goods Act. 
B) the goods are not specific. 
C) the goods are not in existence. 
D) the seller has made some misrepresentation. 
E) the seller does not have title.

Question 6

Herman agreed to sell his entire model railway to Dixie Grant for $1700.Dixie signed an agreement that stated that the goods were available for pickup on September 1st and that she had paid a deposit of $500.Dixie refused to pick up the goods on September 1,and Herman shortly thereafter sold the goods to a third party for $1650.What right does Dixie have to the recovery of her deposit?

Accepted Answer

The court will only allow a deposit to b

Question 7

The definition of chattels includes all of the below EXCEPT

Accepted Answer

A) animals. 
B) buildings. 
C) pieces of land. 
D) goods that derive their value intrinsically. 
E) furniture. 
A) animals. 
B) buildings. 
C) pieces of land. 
D) goods that derive their value intrinsically. 
E) furniture.

Question 8

Colin had been having trouble with wild animals.He asked the sales associate at Hardware Sales what kind of motion detection light would be best to install in his pump house.According to the Sale of Goods Act,Colin should expect a light that

Accepted Answer

A) would not be restricted by the usual exemption clauses. 
B) will need careful installation for the product to be warranteed. 
C) meets his description. 
D) requires skill and labour for installation,therefore is not protected by the Act. 
E) is reasonably fit for the purpose. 
A) would not be restricted by the usual exemption clauses. 
B) will need careful installation for the product to be warranteed. 
C) meets his description. 
D) requires skill and labour for installation,therefore is not protected by the Act. 
E) is reasonably fit for the purpose.

Question 9

Legislation governing consumer contracts does not ban the use of standard form contracts.Rather,it controls the use of standard form contracts employing various techniques including all of the following except

Accepted Answer

A) controls the use of pressure sales tactics. 
B) requires notice and disclosure of onerous terms. 
C) gives the consumer a statutory right to claim triple damages,i.e.three times the actual loss. 
D) provides the consumer with a chance to "back out" once they have had time to consider onerous terms. 
E) inserts terms into the contract. 
A) controls the use of pressure sales tactics. 
B) requires notice and disclosure of onerous terms. 
C) gives the consumer a statutory right to claim triple damages,i.e.three times the actual loss. 
D) provides the consumer with a chance to "back out" once they have had time to consider onerous terms. 
E) inserts terms into the contract.

Question 10

Plastics Ltd. ,which manufactures plastic bottles,has a contract with Carbonation Inc.under which it ships boxes of bottles to Carbonation Inc.at specified times and in specific quantities.The contract goes on to state that Carbonation Inc.can return any boxes of bottles that are not sold.Pursuant to the contract,Plastics Ltd.ships the specified number of boxes of bottles to Carbonation Ltd.'s warehouse.Two weeks later there is a fire in the warehouse and the boxes of bottles are destroyed.In this case,

Accepted Answer

A) title to the boxes of bottles passed to Carbonation Inc.at the time of the contract. 
B) title to the boxes of bottles passed to Carbonation Inc.at the time they were delivered to Carbonation Inc.'s warehouse. 
C) title to the boxes of bottles passed to Carbonation Inc.at the time they were destroyed by fire. 
D) title in the boxes of bottles did not pass to Carbonation Inc.because the boxes of bottles had not yet been set aside by Carbonation Inc. 
E) title to the boxes of bottles did not pass to Carbonation Inc.because Carbonation Inc.did not give notice of its acceptance and no fixed time for return was specified. 
A) title to the boxes of bottles passed to Carbonation Inc.at the time of the contract. 
B) title to the boxes of bottles passed to Carbonation Inc.at the time they were delivered to Carbonation Inc.'s warehouse. 
C) title to the boxes of bottles passed to Carbonation Inc.at the time they were destroyed by fire. 
D) title in the boxes of bottles did not pass to Carbonation Inc.because the boxes of bottles had not yet been set aside by Carbonation Inc. 
E) title to the boxes of bottles did not pass to Carbonation Inc.because Carbonation Inc.did not give notice of its acceptance and no fixed time for return was specified.

Question 11

Billy goes to a yard sale and looks for old car stereos.He finds a system that he has been looking for.Billy believes it is worth a lot more money than the $25 the owner is asking for.Billy asks the owner whether or not the system is in good working condition.The owner tells him that he knows nothing about the quality of the tuner and speakers and is not prepared to comment further.Billy purchases the system for $25.Later he finds out that the system is stolen and did not belong to the owner at the time he purchased it.Billy's action for recovery of his money against the owner will

Accepted Answer

A) fail because of the caveat emptor principle. 
B) fail because the owner would not comment on the quality of the system. 
C) succeed because the actual owner told Billy he would pay him a reward. 
D) succeed because the owner breached an implied term as to title. 
E) fail because Billy only learned of the problem after both parties performed their obligations under the agreement of purchase and sale. 
A) fail because of the caveat emptor principle. 
B) fail because the owner would not comment on the quality of the system. 
C) succeed because the actual owner told Billy he would pay him a reward. 
D) succeed because the owner breached an implied term as to title. 
E) fail because Billy only learned of the problem after both parties performed their obligations under the agreement of purchase and sale.

Question 12

Plastics Ltd.manufactures heavy duty plastic cogs and wheels for elevators and just received an order from Elevators Inc.for 10 cogs and 10 wheels,all heavy duty and tested for specified strength before shipment.Plastics Ltd.has already manufactured the cogs and wheels,but before it has a chance to test them,it receives an order from another company for cogs and wheels and decides to fill that order instead.In this case,

Accepted Answer

A) title in the cogs and wheels passed to Elevators Inc.at the time of the contract. 
B) title in the cogs would pass as soon as the cogs and wheels were set aside for Elevators Inc. 
C) title in the cogs and wheels passed to Elevators Inc.at the time they were manufactured by Plastics Ltd. 
D) title in the cogs and wheels would not pass to Elevators Inc.until the cogs and wheels were set aside for Elevators Inc.and tested. 
E) title in the cogs and wheels passed to Elevators Inc.when Plastics Ltd.sold the cogs and wheels to the other company. 
A) title in the cogs and wheels passed to Elevators Inc.at the time of the contract. 
B) title in the cogs would pass as soon as the cogs and wheels were set aside for Elevators Inc. 
C) title in the cogs and wheels passed to Elevators Inc.at the time they were manufactured by Plastics Ltd. 
D) title in the cogs and wheels would not pass to Elevators Inc.until the cogs and wheels were set aside for Elevators Inc.and tested. 
E) title in the cogs and wheels passed to Elevators Inc.when Plastics Ltd.sold the cogs and wheels to the other company.

Question 13

A Co. ,a local importer of steel ingots,enters into a contract with B Co. ,a large wholesaler of steel,to supply B Co.with ten 50-pound steel ingots,which B Co.will try to sell on behalf of A Co. ;B Co.is to return to A Co.any unsold ingots.In this situation,the agreement is

Accepted Answer

A) an option agreement. 
B) a consignment agreement. 
C) an agreement to sell. 
D) a sale agreement. 
E) an agreement of purchase and sale. 
A) an option agreement. 
B) a consignment agreement. 
C) an agreement to sell. 
D) a sale agreement. 
E) an agreement of purchase and sale.

Question 14

Standard form contracts employed by sellers are carefully regulated by legislation when it comes to the sale of goods or services to consumers.Some businesses attempt to prevent consumers by applying to the court to enforce their rights through class actions.This is done by inserting a term requiring that disputes be resolved by way of arbitration.In essence,the consumer is precluded from participating in any class action.Three provinces,Ontario,Alberta and Quebec,have legislated away this benefit to sellers by

Accepted Answer

A) allowing arbitrators to hear class proceedings. 
B) by legislating that arbitration clauses in consumer contracts are void and unenforceable. 
C) by increasing the damages that can be awarded against sellers at arbitration. 
D) by requiring sellers to bring these onerous terms to the attention of the consumer prior to signing the contract. 
E) by forcing sellers to incorporate federally. 
A) allowing arbitrators to hear class proceedings. 
B) by legislating that arbitration clauses in consumer contracts are void and unenforceable. 
C) by increasing the damages that can be awarded against sellers at arbitration. 
D) by requiring sellers to bring these onerous terms to the attention of the consumer prior to signing the contract. 
E) by forcing sellers to incorporate federally.

Question 15

Are the disclosure statements that set out the cost of borrowing and that are required to be provided under consumer protection legislation really a protection for many borrowers whose credit is poor or who need to borrow money?

Accepted Answer

Although the average borrower can shop a

Question 16

In consumer transactions in Ontario,it may not be possible to contract out of the terms implied by the Sale of Goods Act.Explain what this means and its significance.

Accepted Answer

While the Sale of Goods Act provides tha

Question 17

Janice Stone wanted to go rock climbing and needed some rope.She went to Bill's Hardware Store,told the sales associate that she wanted some rope,and described to him what she was going to use it for.The sales associate recommended a polypropylene rope,and on the basis of this recommendation,Janice bought the rope.Janice used the rope for rock climbing and was injured when the rope broke.She subsequently learned that polypropylene rope is unsuitable for rock climbing because it wears wherever it is bent and is hence subject to breakage.
a.Janice sued Bill's Hardware Store.What must she prove to be successful,and what are her chances of success?
b.If Janice brought in a sample of polypropylene rope and asked specifically for that type of rope,would the result be different than (a)above?

Accepted Answer

(a)Janice can sue Bill's Hardware Store

Question 18

In relation to consumer contracts and the protections provided by legislation,a consumer is defined as an individual (not an organization)purchasing a product or service for the following use

Accepted Answer

A) personal. 
B) family. 
C) household. 
D) non-business. 
E) all of the above 
A) personal. 
B) family. 
C) household. 
D) non-business. 
E) all of the above

Question 19

Brent Cook owns and operates a farm supply store selling feed and hardware for the farm.
a.Mary Martin wants to buy a type of mink feed that must be ordered from Regina.Brent has a sample,which he shows Mary.What rights does Mary have before she is bound to accept the feed when it arrives at Brent's store,and under what circumstances can she reject the goods?
b.Donald Jones enters the store and buys 15 metres of marine rope used primarily by water skiers.The rope breaks while being used by Donald to raise bales of hay from a truck to the hay loft of Donald's barn.The bales fell onto the truck,damaging it and injuring Donald who was sitting in the cab.Donald sues Brent on the basis of breach of implied condition of fitness for the rope.What must Donald establish in order to be successful? What defences does Brent have? What is the likely outcome?

Accepted Answer

(a)When goods are sold by sample,Mary is

Question 20

Under the Sale of Goods Act,the seller of stolen goods can be sued by their recipient (the buyer)for breach of

Accepted Answer

A) an express condition. 
B) a duty. 
C) a warranty. 
D) a guarantee. 
E) an implied condition. 
A) an express condition. 
B) a duty. 
C) a warranty. 
D) a guarantee. 
E) an implied condition.

Exam 14: Sale of Goods and Consumer Contracts

The Sale of Goods Act applies to provision of services.

John purchases a 2009 Pontiac automobile from Car Dealers Inc.Within three weeks,the car's transmission fails to work.Assuming that the car was not warranted against such an event,under the Sale of Goods Act,the failure of the transmission would amount to a breach of the implied condition of

Risk of loss and title to goods go hand in hand.Explain.

Caveat emptor is a worthwhile argument for the seller when

The definition of chattels includes all of the below EXCEPT

Colin had been having trouble with wild animals.He asked the sales associate at Hardware Sales what kind of motion detection light would be best to install in his pump house.According to the Sale of Goods Act,Colin should expect a light that

Legislation governing consumer contracts does not ban the use of standard form contracts.Rather,it controls the use of standard form contracts employing various techniques including all of the following except

A Co. ,a local importer of steel ingots,enters into a contract with B Co. ,a large wholesaler of steel,to supply B Co.with ten 50-pound steel ingots,which B Co.will try to sell on behalf of A Co. ;B Co.is to return to A Co.any unsold ingots.In this situation,the agreement is

Are the disclosure statements that set out the cost of borrowing and that are required to be provided under consumer protection legislation really a protection for many borrowers whose credit is poor or who need to borrow money?

In consumer transactions in Ontario,it may not be possible to contract out of the terms implied by the Sale of Goods Act.Explain what this means and its significance.

In relation to consumer contracts and the protections provided by legislation,a consumer is defined as an individual (not an organization)purchasing a product or service for the following use

Under the Sale of Goods Act,the seller of stolen goods can be sued by their recipient (the buyer)for breach of

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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