Exam 14: Sale of Goods and Consumer Contracts

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?

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?

The Criminal Code of Canada sets a maximum "legal" interest rate,and the federal Interest Act requires that interest rates in written contracts be expressed in annual percentages.

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.

Title in goods purchased by an innocent purchaser outside the ordinary course of business from a third party who did not own those goods does not pass to the innocent purchaser.

A seller may include in a standard form contract of sale of goods an express term exempting it from the liability normally imposed by the implied terms.Which of the following statements is correct?

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

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?

Amanda sold goods at a flea market.She displayed her goods on a large table and marked the price with a label on each item.Dalton chose a piece of china from Amanda's table and paid her the labelled price of $59.Two days later,he returned and demanded his money back based on the fact that the piece of china was not "Royal Crown" but "Crowne Royale." Does Amanda have to return his money? What principle of law governs in this case?

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

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

George goes to his neighbourhood hardware store and asks for a four-foot by eight-foot piece of plywood.He also requests that it be "thick and strong." George purchases the plywood and proceeds to use it as a makeshift bridge on his driveway over a small ditch.The first time he attempts to drive his tractor over the makeshift bridge,the plywood collapses,causing damage to the tractor.George's suit against the hardware store will

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?

John and Jane entered into an agreement for the sale and purchase of an ornate oak table.The purchase price was $450.The contract was silent as to the time for payment.John,the vendor,insisted that the $450 be paid to him before he would deliver the table.Jane insisted that the table be delivered to her before she paid the $450.Who has taken the correct position? Give the legal basis for your answer.

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

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.

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?

International Shippers Corp.wants your advice on the legal implications of international trade.Business has been developing in parts of the Middle East where it's sometimes hard to collect from customers.You advise International Shippers that they should

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.

Playgrounds Inc.manufactures playgrounds for children of all ages.After discussions with a representative of Playgrounds Inc.,and relying on those discussions,Happy High School orders a playground from Playgrounds Inc.,specifying that the playground is for older children and teenagers,age 9 and over.Playgrounds Inc.delivers a playground that,when assembled,is only 1.25 metres high and cannot be used by Happy High School's children.Happy High School refuses to keep the playground and will say that under the Sale of Goods Act