Question 1

If in respect of a contract for the sale of goods there is a breach of warranty,the remedy available pursuant to the Sale of Goods Act is

Accepted Answer

A) damages but not repudiation of the contract. 
B) damages and repudiation of the contract. 
C) rescission of the contract. 
D) repudiation of the contract but not damages. 
E) damages or repudiation of contract. 
A) damages but not repudiation of the contract. 
B) damages and repudiation of the contract. 
C) rescission of the contract. 
D) repudiation of the contract but not damages. 
E) damages or repudiation of contract.

Question 2

Don Mills wished to purchase an automobile.He saw a 1994 Mustang advertised for sale in the local newspaper.Don talked to the owner,Mary Smyth,and advised her that he didn't know much about cars but needed a reliable,comfortable car for long-distance travel.Mary confirmed that she found her Mustang comfortable and it was probably what Don needed.Don then examined the car and purchased it from Mary for $5000.They both signed a short contract,which contained a clause stating that the car was sold "as is and with no warranties whatsoever."
a.If Don found that the car was uncomfortable and not suitable for long-distance highway travel,what action,if any,could he bring against Mary,and what would be the likely outcome?
b.If,the day after Don purchased the car,the transmission failed and the engine seized up,what action could Don take against Mary? What remedies could he claim and what defences would Mary likely raise?
c.If Don discovered that the Mustang was encumbered by a chattel mortgage that was not disclosed by Mary,what remedies would be available to Don? Give the legal basis for your answer.

Accepted Answer

a.As there is no express warranty contai

Question 3

Under the Sale of Goods Act,defects in goods sold in accordance with a sample that has been provided need not be apparent on reasonable examination.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a remedy of the seller under the Sale of Goods Act?

Accepted Answer

A) resale 
B) chattel title 
C) order bill of lading 
D) wrongful withholding or disposition 
E) caveat emptor 
A) resale 
B) chattel title 
C) order bill of lading 
D) wrongful withholding or disposition 
E) caveat emptor

Question 5

What is a bill of lading and what is its purpose?

Accepted Answer

A bill of lading is a shipping document

Question 6

A buyer who specifies goods purchased under a trade name can always rely on the implied condition of fitness for purpose in the Sale of Goods Act.

Accepted Answer

A) True 
 B)False

Question 7

Describe four common law remedies a buyer may have against a seller of goods.

Accepted Answer

Four common law remedies of a buyer incl

Question 8

Philip agrees to sell his 1972 Corvette to Phyllis for $25 000.Phyllis agrees to make a down payment of $12 500 immediately and to pay the remaining $12 500 within 30 days.After making the down payment,Phyllis encounters serious financial difficulties and is unable to come up with the balance of the contract price.She advises Philip that she will be unable to close the deal and asks for her down payment back.Philip refuses,claiming that the monies previously paid are to be forfeited if she does not perform her remaining obligations under the contract.What are Phyllis's chances of success in a lawsuit to recover the $12 500?

Accepted Answer

It is important to distinguish between a

Question 9

Caveat emptor,which means "let the buyer beware," functions to limit the liability of sellers.However,it is not a rigid rule.An situation in which a seller would NOT be able to use this defence would be if

Accepted Answer

A) the goods are in existence and are specific items that may be inspected by the buyer. 
B) the buyer had every opportunity to inspect the goods. 
C) the seller appeared to be knowledgeable about the product. 
D) the seller made no misrepresentation concerning the goods. 
E) the seller has made misrepresentations about the goods. 
A) the goods are in existence and are specific items that may be inspected by the buyer. 
B) the buyer had every opportunity to inspect the goods. 
C) the seller appeared to be knowledgeable about the product. 
D) the seller made no misrepresentation concerning the goods. 
E) the seller has made misrepresentations about the goods.

Question 10

Samuel incorporated a company federally in order to sell fire prevention equipment to consumers across Canada.His lawyers have told him that he can use the same standard form contract across the entire country.However,because each of the provinces have different legislation with respect to consumer contracts,some terms may be valid and enforceable in some provinces and yet void and unenforceable in others.In order to employ the use of a single standard form contract while at the same time protecting his interests,Samuel should

Accepted Answer

A) include a term in the contract that states that any term deemed to be illegal,void or unenforceable may be severed or cut out of the contract leaving the balance of the contract to be in force. 
B) draft separate standard form contracts for each province taking into account the different legislation in force. 
C) employ the use of oral contracts with consumers which are at common law equally as enforceable as written contracts. 
D) forget the idea of selling his product to all Canadians and focus on one particular province. 
E) ensure that the standard form contract has an airtight exemption clause. 
A) include a term in the contract that states that any term deemed to be illegal,void or unenforceable may be severed or cut out of the contract leaving the balance of the contract to be in force. 
B) draft separate standard form contracts for each province taking into account the different legislation in force. 
C) employ the use of oral contracts with consumers which are at common law equally as enforceable as written contracts. 
D) forget the idea of selling his product to all Canadians and focus on one particular province. 
E) ensure that the standard form contract has an airtight exemption clause.

Question 11

Under the Sale of Goods Act,when a person possesses goods,she or he is also the owner of the goods.

Accepted Answer

A) True 
 B)False

Question 12

Ted goes to his neighborhood hardware store and asks for a six foot by two foot piece of plywood.He also requests that it be "sturdy".Ted purchases the plywood and proceeds to use it as a makeshift bridge for his dog,a 75 pound black lab,to cross over a small ditch in the backyard.The first time his lab attempts to cross the bridge it breaks and the dog falls into the ditch fracturing a bone.Ted's suit against the hardware store for the vet bills will

Accepted Answer

A) succeed for breach of implied term of fitness because Ted specifically asked for the plywood to be "sturdy". 
B) fail because Ted did not expressly state the particular purpose for which he intended to use the plywood and therefore the hardware store did not breach any implied term of fitness. 
C) succeed because the hardware store meets the implied term of merchantable quality by selling the plywood to Ted in these circumstances. 
D) fail because there was no breach of the implied term as to description. 
E) none of the above 
A) succeed for breach of implied term of fitness because Ted specifically asked for the plywood to be "sturdy". 
B) fail because Ted did not expressly state the particular purpose for which he intended to use the plywood and therefore the hardware store did not breach any implied term of fitness. 
C) succeed because the hardware store meets the implied term of merchantable quality by selling the plywood to Ted in these circumstances. 
D) fail because there was no breach of the implied term as to description. 
E) none of the above

Question 13

Jack is a sales agent.He takes delivery of motor vehicles and sells them from his dealership.When Jack makes a sale,the property in the goods passes between Jack and the buyer.

Accepted Answer

A) True 
 B)False

Question 14

Hugo agreed to purchase all the oil contained in a tank for $1 per litre.He paid a deposit of $400 and agreed to participate in measuring the quantity contained by the tank.While Hugo and the owner of the tank were walking towards the tank with the measuring equipment,the tank burst and all the oil was lost.The owner's records indicated there were 962 litres in the tank.Who had title to the spilled oil?

Accepted Answer

The sale was of specific goods in a deli

Question 15

Paper Products Ltd.sold paper to Lillian to use in brochures she was producing for a client.Before making the contract,Paper Products Ltd.showed Lillian a sample of the paper it was going to sell her,and Lillian approved of the choice.The paper provided to Lillian matched the sample she had been shown.One month after she bought the paper,Lillian found that it had yellowed and that it was useless for the brochures.Paper Products Ltd.is not liable to Lillian for breach of an implied term under the Sale of Goods Act because Lillian approved a sample of the paper she bought.

Accepted Answer

A) True 
 B)False

Question 16

Amos has purchased a discontinued radio clock from the local discount electronics outlet.Upon arriving home,he notices that the timer is not functional.He wonders if he could legally demand his money back and consults you.You tell him that

Accepted Answer

A) sellers are strictly liable for what they sell,so simply bring it back for a refund. 
B) there is an implied condition that the goods will be of "merchantable quality." 
C) since the item was discontinued,all sales are final,and the store does not need to return his money. 
D) title has not passed until the seller has "put item into a deliverable state." 
E) he should first consult the bill of sale for any exemption clauses. 
A) sellers are strictly liable for what they sell,so simply bring it back for a refund. 
B) there is an implied condition that the goods will be of "merchantable quality." 
C) since the item was discontinued,all sales are final,and the store does not need to return his money. 
D) title has not passed until the seller has "put item into a deliverable state." 
E) he should first consult the bill of sale for any exemption clauses.

Question 17

Albert sells collectibles.He received a telephone call from Penelope White,who was looking for cranberry glass.Albert advised her that he had several sets of cranberry glass.After describing them to her over the phone,she agreed to purchase them.He shipped them to Penelope and when they arrived she refused to accept them.What remedies,if any,is Albert entitled to?

Accepted Answer

Albert will be entitled to bring an acti

Question 18

The Sale of Goods Act makes it possible for a seller to exempt itself from the implied conditions by making the exclusions express terms of the contract.

Accepted Answer

A) True 
 B)False

Question 19

Jones Ltd.places an order with Playgoods Ltd.for 100 children's playhouses.The contract provides that Playgoods Ltd.will pack the playhouses in boxes carrying the Jones Ltd.name and its "J" logo,which Jones Ltd.will supply.Jones Ltd.supplies the boxes,but before Playgoods Ltd.has had an opportunity to pack the playhouses into the boxes,the playhouses are destroyed by a fire in its warehouse.In this case,

Accepted Answer

A) title had not yet passed to Jones Ltd.because Playgoods Ltd.failed to notify Jones Ltd.that the playhouses had not been packed in the appropriate boxes. 
B) title to the playhouses passed to Jones Ltd.at the time Jones Ltd.supplied the boxes. 
C) title to the playhouses would have passed to Jones Ltd.when Playgoods Ltd.packed the playhouses in the appropriate boxes. 
D) title to the playhouses did not yet pass to Jones Ltd.because Playgoods Ltd.failed to set the playhouses aside. 
E) title to the playhouses passed to Jones Ltd.at the time of the contract. 
A) title had not yet passed to Jones Ltd.because Playgoods Ltd.failed to notify Jones Ltd.that the playhouses had not been packed in the appropriate boxes. 
B) title to the playhouses passed to Jones Ltd.at the time Jones Ltd.supplied the boxes. 
C) title to the playhouses would have passed to Jones Ltd.when Playgoods Ltd.packed the playhouses in the appropriate boxes. 
D) title to the playhouses did not yet pass to Jones Ltd.because Playgoods Ltd.failed to set the playhouses aside. 
E) title to the playhouses passed to Jones Ltd.at the time of the contract.

Question 20

While in the shopping mall,Mabel special ordered a $29.95 DVD from VistaVideo.She was asked to place a $10 deposit on the order because it was "store policy." A little while later,before leaving the mall,Mabel changed her mind about ordering the video because she needed the $10 for something else.VistaVideo refused to return the money.Is Mabel entitled to get the $10 back?

Accepted Answer

A) No,she is not,since the $10 was a deposit. 
B) Yes,she is,because it is liquidated damages. 
C) Yes,she is,since as of yet no costs were accrued in ordering the DVD. 
D) Yes,she is,because the $10 was intended to be part payment. 
E) No,she is not,because the $10 was not a genuine estimate of the probable loss resulting from a breach. 
A) No,she is not,since the $10 was a deposit. 
B) Yes,she is,because it is liquidated damages. 
C) Yes,she is,since as of yet no costs were accrued in ordering the DVD. 
D) Yes,she is,because the $10 was intended to be part payment. 
E) No,she is not,because the $10 was not a genuine estimate of the probable loss resulting from a breach.

Exam 14: Sale of Goods and Consumer Contracts

If in respect of a contract for the sale of goods there is a breach of warranty,the remedy available pursuant to the Sale of Goods Act is

Under the Sale of Goods Act,defects in goods sold in accordance with a sample that has been provided need not be apparent on reasonable examination.

Which of the following is a remedy of the seller under the Sale of Goods Act?

What is a bill of lading and what is its purpose?

A buyer who specifies goods purchased under a trade name can always rely on the implied condition of fitness for purpose in the Sale of Goods Act.

Describe four common law remedies a buyer may have against a seller of goods.

Caveat emptor,which means "let the buyer beware," functions to limit the liability of sellers.However,it is not a rigid rule.An situation in which a seller would NOT be able to use this defence would be if

Under the Sale of Goods Act,when a person possesses goods,she or he is also the owner of the goods.

Jack is a sales agent.He takes delivery of motor vehicles and sells them from his dealership.When Jack makes a sale,the property in the goods passes between Jack and the buyer.

Amos has purchased a discontinued radio clock from the local discount electronics outlet.Upon arriving home,he notices that the timer is not functional.He wonders if he could legally demand his money back and consults you.You tell him that

The Sale of Goods Act makes it possible for a seller to exempt itself from the implied conditions by making the exclusions express terms of the contract.

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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