Chat with AIExam 16: Sales and Consumer Protection
Joe bought a TV "on approval," took it home, and installed it on his wall as part of an AV system in his renovated recreation room. He discovered, however, that the TV was too small, extracted it from the wall, and took it back, saying he was not happy about it. The seller asked about the minor scratches on the finish and Joe explained how it had been built into the wall, and the trouble he went to get it out again. Has title transferred? Explain.
(82) 
VerifiedTitle transferred as soon as he did something to those goods that was inconsistent with the seller's continued ownership of them. This is Rule #4.
Explain what is meant by a "cooling-off period."
(81) VerifiedA statutorily defined period during which purchasers in door-to-door sales may change their minds and rescind a contract.
Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.
(75) VerifiedOne of the most important provisions of the Sale of Goods Act relates to fitness and quality. Students should point out that this implied term might be the only provision in a contract relating to the ability of the product to perform as required or whether it is properly made to do the job. These provisions apply to both new and used goods, and they apply not only to consumer purchases but also to business transactions, including heavy-duty machinery. The Hunter Engineering case is a good example of this provision being applied to the sale of large, expensive, specialized equipment used in mining operations.
Students should also point out that in consumer transactions, when dealing with new goods, many jurisdictions impose terms relating to the fitness and quality of the product on the manufacturer and seller. Exemption clauses are an attempt to modify this obligation as set out in the Sale of Goods Act, but in many jurisdictions those exemption clauses are void in consumer transactions. This question is a good opportunity for students to demonstrate an understanding of not only how the Sale of Goods Act implies terms into the agreement that otherwise would not be included, but also the specific nature of these clauses with respect to fitness and quality, and how they have been expanded into a form of consumer protection legislation.
Every Canadian jurisdiction has now enacted an international Sale of Goods Act.
(78) Explain the protection provided by the Unconscionable Transactions Relief Act (or Unconscionable Transactions Act, depending on the jurisdiction).
(76) Compare assignment of contractual rights with negotiation of a negotiable instrument, indicating the advantages and disadvantages of each.
(86) Explain the options that are available to the victim of a breach of a condition in the contract.
(90) Tina's Gourmet Catering Ltd. (hereinafter referred to as "Tina's") makes several types of fresh salads, which they package in sealed containers and sell to various retail outlets. Grandma Wright, shopping with her daughter Jane, bought one of Tina's salads at the delicatessen at Superdeal Grocers Ltd. (Superdeal). Jane and her mom drove to Jane's and Jane served the salad to her family for lunch. The salad was contaminated through Tina's carelessness and caused Jane's family to be very sick. Jane's husband missed work and her kids missed school for a week. Neither Jane nor her mother were sick because neither had eaten the salad. On these facts, which of the following actions would most likely be successful?
(84) Colson went to Logon Drugs and bought some light bulbs for the hallways of his new apartment building. A tenant asked for one and Colson gave him one but told him he was responsible for getting his own from now on. The bulb, manufactured by Belleville Brite, Ltd. and sold to Logon Drugs by Dandy Distributors Ltd., was improperly made. It exploded and set some curtains on fire. The tenant's apartment suffered $6000 damage and he had to move out. He couldn't live there while repairs were being undertaken and had no choice but to find another place, as it would take three weeks to get the apartment liveable again. On these facts, which of the following is false?
(89) With F.O.B. contracts, title and risk always transfer at the seller's place of business.
(74) When goods are en route to the buyer, upon the buyer's default, the seller has the right to intercept the goods and retake possession from the transporter as long as the goods have not yet reached the buyer. What is this right called?
(87) Which of the following complaints would lead to a successful action under the Sale of Goods Act?
(79) The purpose of the federal Competition Act is to prevent competition among retailers.
(81) Explain how the money lending business is controlled in your province.
(71) Which of the following is primarily liable on an accepted bill of exchange?
(76) With respect to a sale of goods, which one of the following statements is false?
(89) An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.
(78) A cheque made payable "after the building is completed" can qualify as a negotiable instrument.
(86) 
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