Question 1

Which of the following statements accurately states the law with respect to consumer transactions?

Accepted Answer

A)  Where the court decides that a transaction was unconscionable, that transaction is unenforceable by the buyer. 
B)  Where a consumer has been subject to a deceptive or unconscionable act or practice, he may recover damages and an order of rescission. 
C)  In all consumer transactions, there is a cooling-off period of seven days in which the consumer can call off the deal. 
D)  Where a supplier engages in a deceptive or unconscionable act, he is neither subject to fines nor jail. 
E)  A deceptive or unconscionable supplier does not lose his right to carry on business in the province. 
A)  Where the court decides that a transaction was unconscionable, that transaction is unenforceable by the buyer. 
B)  Where a consumer has been subject to a deceptive or unconscionable act or practice, he may recover damages and an order of rescission. 
C)  In all consumer transactions, there is a cooling-off period of seven days in which the consumer can call off the deal. 
D)  Where a supplier engages in a deceptive or unconscionable act, he is neither subject to fines nor jail. 
E)  A deceptive or unconscionable supplier does not lose his right to carry on business in the province.

Question 2

A warranty under the Sale of Goods Act is a condition the breach of which will allow the victim of the breach to refuse to go through with their side of the agreement.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true with regard to the implied terms of the Sale of Goods Act?

Accepted Answer

A)  The Act does not provide that the goods must be fit for purpose. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. 
C)  When you buy a car and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of merchantable quality, and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days. 
A)  The Act does not provide that the goods must be fit for purpose. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. 
C)  When you buy a car and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of merchantable quality, and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days.

Question 4

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future, title always transfers at the point of delivery.

Accepted Answer

A) True 
 B)False

Question 5

The Competition Act decriminalizes many anti-competitive practices and it is here that a significant change took place with the 2009 amendments.

Accepted Answer

A) True 
 B)False

Question 6

Explain what obligation the Sale of Goods Act puts on the seller with respect to fitness and quality.

Accepted Answer

The Act implies a condition into the con

Question 7

To which one of the following contracts would the Sale of Goods Act apply?

Accepted Answer

A)  A contract for the sale and purchase of a farm 
B)  A contract for the assignment of a company's accounts receivable 
C)  A contract with an artist to have a portrait painted 
D)  A contract in which one party gives an antique pin in exchange for the other party giving an antique cigar box 
E)  A contract in which the seller sells a computer and ownership will transfer to the buyer at a specified future time 
A)  A contract for the sale and purchase of a farm 
B)  A contract for the assignment of a company's accounts receivable 
C)  A contract with an artist to have a portrait painted 
D)  A contract in which one party gives an antique pin in exchange for the other party giving an antique cigar box 
E)  A contract in which the seller sells a computer and ownership will transfer to the buyer at a specified future time

Question 8

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

Accepted Answer

A) True 
 B)False

Question 9

Distinguish between a vertical merger, horizontal merger, and a conglomerate merger.

Accepted Answer

A vertical merger is a merger of a suppl

Question 10

When a buyer defaults, the seller has an unpaid ________ against the goods.

Accepted Answer

The answer of When a buyer defaults, the seller has...

Question 11

With regard to a contract for the sale and purchase of goods, which of the following is false?

Accepted Answer

A)  Title to the goods may pass to the buyer at the time of contract. 
B)  Contracts for the sale of goods valued at more than $2 must be in writing in order to be enforceable. 
C)  The Act provides a number of implied terms that may be added to the contract if the parties failed to mention those particular matters. 
D)  To guard against loss, a buyer of costly goods should have his insurance in place by the time that title passes to him, because the person with title generally bears the loss. 
E)  The buyer of used goods has the protection of the implied terms of the Sale of Goods Act, but the Act does not automatically void an exemption clause in a contract for the sale of used goods. 
A)  Title to the goods may pass to the buyer at the time of contract. 
B)  Contracts for the sale of goods valued at more than $2 must be in writing in order to be enforceable. 
C)  The Act provides a number of implied terms that may be added to the contract if the parties failed to mention those particular matters. 
D)  To guard against loss, a buyer of costly goods should have his insurance in place by the time that title passes to him, because the person with title generally bears the loss. 
E)  The buyer of used goods has the protection of the implied terms of the Sale of Goods Act, but the Act does not automatically void an exemption clause in a contract for the sale of used goods.

Question 12

Mrs. Olde died. Mr. Olde was treated by a psychiatrist, Dr. H, who advised him that part of his difficulty was his trying to make financial decisions that had previously been made by his wife. Upon Dr. H's advice, Mr. Olde contracted with Dr. H to examine his financial situation and to give Olde a letter advising him, in detail, what steps he should take with regard to 20 or so pressing business decisions. The Dr. H's fee for this service would be $2000. As agreed, Dr. H attended Mr. Olde's home one evening and examined all of his financial records. Olde issued a cheque payable to Dr. H for $2000, which was drawn on the Bank of Montreal, Austin Street branch. As promised, Dr. H's letter of advice was delivered on the following day-a one-paragraph letter in which all he advised was that Mr. Olde transfer his two income-producing properties into Dr. H's name so that he could "take care of things." Mr. Olde attended his bank immediately to stop payment on the cheque. Before he did, however, the psychiatrist had endorsed it over to his bank, the Royal Bank at 16th Avenue. On these facts, which one of the following is true?

Accepted Answer

A)  Mr. Olde is the drawee of the cheque. 
B)  Because the parties deal with different banks, Mr. Olde would not have to pay the holder of the cheque because he can successfully argue breach of contract. 
C)  If Mr. Olde can prove undue influence was used by the psychiatrist, he will not have to pay the holder of the cheque. 
D)  The psychiatrist is the acceptor of the cheque. 
E)  Mr. Olde will have to pay the holder of the cheque because it is a holder in due course. 
A)  Mr. Olde is the drawee of the cheque. 
B)  Because the parties deal with different banks, Mr. Olde would not have to pay the holder of the cheque because he can successfully argue breach of contract. 
C)  If Mr. Olde can prove undue influence was used by the psychiatrist, he will not have to pay the holder of the cheque. 
D)  The psychiatrist is the acceptor of the cheque. 
E)  Mr. Olde will have to pay the holder of the cheque because it is a holder in due course.

Question 13

Explain the relationship between risk and title and how they are dealt with in the Sale of Goods Act.

Accepted Answer

Whoever is assigned the risk will suffer

Question 14

Distinguish between a cheque and a bill of exchange.

Accepted Answer

Both of these instruments involve three

Question 15

The Gift Card Regulation stipulates that gift cards are allowed to have expiry dates.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is correct with respect to the Sale of Goods Act?

Accepted Answer

A)  The parties are restricted to contract out of any of the terms of the Sale of Goods Act. 
B)  Some of the terms of the Sale of Goods Act are implied in the contract of sale. 
C)  The terms included in the Sale of Goods Act override the terms agreed upon by the parties to such a sale of goods. 
D)  The Sale of Goods Act does apply to the sale of land. 
E)  The Sale of Goods Act does apply to the assignment of a contractual claim. 
A)  The parties are restricted to contract out of any of the terms of the Sale of Goods Act. 
B)  Some of the terms of the Sale of Goods Act are implied in the contract of sale. 
C)  The terms included in the Sale of Goods Act override the terms agreed upon by the parties to such a sale of goods. 
D)  The Sale of Goods Act does apply to the sale of land. 
E)  The Sale of Goods Act does apply to the assignment of a contractual claim.

Question 17

In what way does the Interest Act affect contracts under which interest is payable?

Accepted Answer

The Interest Act provides that

Question 18

The following events occurred before the goods or parts of the goods were destroyed by fire. In which case would the buyer suffer the loss?

Accepted Answer

A)  Justin contracted for a piano that had to be tuned before it was in a deliverable state. It was tuned, but Justin had not been notified that it was ready. 
B)  McGrady ordered a chainsaw advertised in the Sears catalogue. 
C)  Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. 
D)  Manchesco chose which of the chairs he wanted and contracted for it, but he had agreed to pay and pick it up the next day. 
E)  Heinz contracted for all the corn in silo A. The seller still had to weigh the corn to determine the price. 
A)  Justin contracted for a piano that had to be tuned before it was in a deliverable state. It was tuned, but Justin had not been notified that it was ready. 
B)  McGrady ordered a chainsaw advertised in the Sears catalogue. 
C)  Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. 
D)  Manchesco chose which of the chairs he wanted and contracted for it, but he had agreed to pay and pick it up the next day. 
E)  Heinz contracted for all the corn in silo A. The seller still had to weigh the corn to determine the price.

Question 19

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?

Accepted Answer

A)  Parties cannot contract out of the Sale of Goods Act. 
B)  An exemption clause is effective in all cases except when dealing with a fundamental breach. 
C)  An exemption clause that is inconsistent with the Sales of Goods Act is illegal and therefore void. 
D)  Except in cases involving a sale of goods, the presence of an exemption clause will protect a party from any misconduct. 
E)  Even in the face of a fundamental breach, it is possible for parties to exempt themselves from liability. 
A)  Parties cannot contract out of the Sale of Goods Act. 
B)  An exemption clause is effective in all cases except when dealing with a fundamental breach. 
C)  An exemption clause that is inconsistent with the Sales of Goods Act is illegal and therefore void. 
D)  Except in cases involving a sale of goods, the presence of an exemption clause will protect a party from any misconduct. 
E)  Even in the face of a fundamental breach, it is possible for parties to exempt themselves from liability.

Question 20

For the purpose of building a playhouse for his sons, Andy went to Lumberlore Ltd. and bought, with his credit card and without talking to a salesperson, the following things: a drill, lumber, and a six-foot step ladder. While working on the project, Andy noted that the drill worked but it was not powerful enough to drill into the 4×4-inch posts the playhouse needed for support. When he went toward the house to get his car keys, he found his wife unconscious. She had used the ladder to take some leaves out of the gutters, and it had buckled under her weight because of its faulty design. Which of the following is true?

Accepted Answer

A)  Andy would have no cause for action against Lumberlore Ltd. for breach of a condition. 
B)  Andy would have an action against the seller for breach of a condition of the contract for the drill because it wasn't fit for his purpose. 
C)  Andy's wife would have no cause of action against the manufacturer of the ladder in tort. 
D)  The sale of the items he bought are not covered by the Sale of Goods Act because he used his credit card. 
E)  Title for the goods passed to Andy at the time of contract but that does not preclude him from his remedies. 
A)  Andy would have no cause for action against Lumberlore Ltd. for breach of a condition. 
B)  Andy would have an action against the seller for breach of a condition of the contract for the drill because it wasn't fit for his purpose. 
C)  Andy's wife would have no cause of action against the manufacturer of the ladder in tort. 
D)  The sale of the items he bought are not covered by the Sale of Goods Act because he used his credit card. 
E)  Title for the goods passed to Andy at the time of contract but that does not preclude him from his remedies.

Which of the following statements accurately states the law with respect to consumer transactions?

A warranty under the Sale of Goods Act is a condition the breach of which will allow the victim of the breach to refuse to go through with their side of the agreement.

Which of the following is true with regard to the implied terms of the Sale of Goods Act?

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future, title always transfers at the point of delivery.

The Competition Act decriminalizes many anti-competitive practices and it is here that a significant change took place with the 2009 amendments.

Explain what obligation the Sale of Goods Act puts on the seller with respect to fitness and quality.

To which one of the following contracts would the Sale of Goods Act apply?

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

Distinguish between a vertical merger, horizontal merger, and a conglomerate merger.

When a buyer defaults, the seller has an unpaid ________ against the goods.

With regard to a contract for the sale and purchase of goods, which of the following is false?

Explain the relationship between risk and title and how they are dealt with in the Sale of Goods Act.

Distinguish between a cheque and a bill of exchange.

The Gift Card Regulation stipulates that gift cards are allowed to have expiry dates.

Which of the following statements is correct with respect to the Sale of Goods Act?

In what way does the Interest Act affect contracts under which interest is payable?

The following events occurred before the goods or parts of the goods were destroyed by fire. In which case would the buyer suffer the loss?

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

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Exam 16: Sales and Consumer Protection

Which of the following statements accurately states the law with respect to consumer transactions?

A warranty under the Sale of Goods Act is a condition the breach of which will allow the victim of the breach to refuse to go through with their side of the agreement.

Which of the following is true with regard to the implied terms of the Sale of Goods Act?

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future, title always transfers at the point of delivery.

The Competition Act decriminalizes many anti-competitive practices and it is here that a significant change took place with the 2009 amendments.

Explain what obligation the Sale of Goods Act puts on the seller with respect to fitness and quality.

To which one of the following contracts would the Sale of Goods Act apply?

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

Distinguish between a vertical merger, horizontal merger, and a conglomerate merger.

When a buyer defaults, the seller has an unpaid ________ against the goods.

With regard to a contract for the sale and purchase of goods, which of the following is false?

Explain the relationship between risk and title and how they are dealt with in the Sale of Goods Act.

Distinguish between a cheque and a bill of exchange.

The Gift Card Regulation stipulates that gift cards are allowed to have expiry dates.

Which of the following statements is correct with respect to the Sale of Goods Act?

In what way does the Interest Act affect contracts under which interest is payable?

The following events occurred before the goods or parts of the goods were destroyed by fire. In which case would the buyer suffer the loss?

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Filters