Exam 16: Sales and Consumer Protection

Industry Canada was established under the Department of Industry Act.

If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

The Competition Bureau is an independent law enforcement agency that administers and enforces the Competition Act.

If the contract doesn't say who bears the loss if an item is lost or stolen, the Sale of Goods Act says risk goes with title. If the contract doesn't say when the title will pass, the Sale of Goods Act implies when it will pass. In which of the following will the statute imply that title will pass to the buyer at the time of the contract?

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

Which of the following complaints would lead to a successful action under the Sale of Goods Act?

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Discuss the different types of negotiable instruments and indicate the significance of them being classified as negotiable.

Where the parties fail to state a price in a sale of goods transaction, what effect will the Sale of Goods Act have on that agreement?

What types of transactions does the Sale of Goods Act apply to?

The Sale of Goods Act applies to both goods and services.

To which one of the following would the Sale of Goods Act not apply?

The protection of consumers is solely a provincial responsibility.

Risk refers to potential loss due to the destruction or damage of the goods.

Slipstream bought a new lawnmower for mowing his own yard at home from Mulcher Mowers Ltd., a lawn and garden tools dealer in Moose Jaw. Unfortunately, while there were no major defects with the machine, a number of small things kept going wrong: the blade kept going out of adjustment, the starter rope broke twice, a wheel fell off, the handle loosened and wobbled, and the machine stalled in heavy grass. During the summer, Slipstream had it repaired six times. These small annoyances continued and finally, in disgust, he returned the mower to Mulcher. However, Mulcher's manager (a university graduate) pointed out to Slipstream that their contract contained a very extensive exemption clause excluding "all conditions or warranties, express or implied, statutory or otherwise," and refused to accept the mower back or to return Slipstream's money. Slipstream commenced legal action. Which of the following statements best describes Slipstream's legal situation?

For an instrument to be negotiable, it must be an unconditional promise to pay a specific amount at some future date or on demand.

Explain what is meant by merchantable quality.

Discuss the common law and legislative enactments in place controlling debt collection agencies.

Gregory went to Collegiate Sports Ltd. with his dad, who asked for some shoes for Gregory suitable for playing squash. Gregory was given a pair of running shoes suitable only for jogging. His dad paid with cash. That evening, wearing the new shoes while playing squash, Gregory broke his ankle. In the ensuing lawsuit, the statement of claim cited the provisions of the Sale of Goods Act. Which of the following is true if it were proven that the shoes were inappropriate and the cause of the injury?

The principles of freedom of contract and caveat emptor have been completely done away with by the Sale of Goods Act.