Question 1

Give examples of several different types of industries that are specifically controlled by consumer protection legislation.

Accepted Answer

This will vary from province to province

Question 2

A bill of exchange is an order by one person to another to pay money to a third.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not controlled by consumer protection legislation?

Accepted Answer

A)  False advertising 
B)  The investigation of complaints 
C)  Unconscionable transactions 
D)  Business transactions 
E)  Unequal bargaining power that is abusive 
A)  False advertising 
B)  The investigation of complaints 
C)  Unconscionable transactions 
D)  Business transactions 
E)  Unequal bargaining power that is abusive

Question 4

Distinguish between a sale and an agreement to sell.

Accepted Answer

A sale deals with the present transfer o

Question 5

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

Accepted Answer

A)  The Act provides that the goods must be fit for purpose, but to have that protection, the buyer must be dealing with a seller who deals in goods of that kind. 
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 condition 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, which 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 match the sample. 
A)  The Act provides that the goods must be fit for purpose, but to have that protection, the buyer must be dealing with a seller who deals in goods of that kind. 
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 condition 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, which 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 match the sample.

Question 6

The general rule is that risk follows title.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following would the title pass to the buyer only when the goods were "unconditionally appropriated" with assent?

Accepted Answer

A)  Jethro chose the guitar and paid for it, but it had to be strung before it was ready. 
B)  Alice chose a guitar that was ready and he agreed to buy it. They had agreed that he could pay for it next month and pick it up when he paid. 
C)  Mark chose a guitar advertised in the catalogue of Guitars Galore Ltd., called the store, and after some discussion on its features and price, ordered it. 
D)  After some discussion with the owner of Guitars Galore Ltd. as to which of the guitars there were best for a beginner, Rudy bought a guitar for his son "on approval" and took it with him. 
E)  Jenny wanted amplifier A for her guitar, but the store only had amplifier B. She decided to take it because she wanted one right away. 
A)  Jethro chose the guitar and paid for it, but it had to be strung before it was ready. 
B)  Alice chose a guitar that was ready and he agreed to buy it. They had agreed that he could pay for it next month and pick it up when he paid. 
C)  Mark chose a guitar advertised in the catalogue of Guitars Galore Ltd., called the store, and after some discussion on its features and price, ordered it. 
D)  After some discussion with the owner of Guitars Galore Ltd. as to which of the guitars there were best for a beginner, Rudy bought a guitar for his son "on approval" and took it with him. 
E)  Jenny wanted amplifier A for her guitar, but the store only had amplifier B. She decided to take it because she wanted one right away.

Question 8

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

Accepted Answer

A)  A haircut at the local hairstylist 
B)  A contract for the sale of a ranch 
C)  A contract for future goods when title will pass in the future 
D)  A contract for the purchase of a house 
E)  A contract for the sale of intangible property 
A)  A haircut at the local hairstylist 
B)  A contract for the sale of a ranch 
C)  A contract for future goods when title will pass in the future 
D)  A contract for the purchase of a house 
E)  A contract for the sale of intangible property

Question 9

Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract?

Accepted Answer

A)  The risk of loss may depend on who holds title. 
B)  The parties can contradict the provisions of the Sale of Goods Act on this question. 
C)  When unascertained or future goods are involved, the risk transfers once a reasonable time has passed. 
D)  The risk of specific goods may pass upon formation of the contract. 
E)  Where repairs have to be done before delivery, the risk passes when the repairs are made and notice given. 
A)  The risk of loss may depend on who holds title. 
B)  The parties can contradict the provisions of the Sale of Goods Act on this question. 
C)  When unascertained or future goods are involved, the risk transfers once a reasonable time has passed. 
D)  The risk of specific goods may pass upon formation of the contract. 
E)  Where repairs have to be done before delivery, the risk passes when the repairs are made and notice given.

Question 10

Give examples of three federal acts that have consumer protection aspects to them.

Accepted Answer

Examples include the Food and Drugs Act,

Question 11

If you buy a toaster from a second-hand dealer of small appliances, which of the following is true?

Accepted Answer

A)  The Sale of Goods Act does not apply. 
B)  Title to the toaster would pass at the time the buyer picked it up the next day. 
C)  The Sale of Goods Act prohibits the seller from exempting himself from liability in the event that the toaster is not fit for purpose. 
D)  There is an implied term of the contract that the seller has good title, i.e., the right to sell it. 
E)  The risk of loss depends on who has possession of the toaster. 
A)  The Sale of Goods Act does not apply. 
B)  Title to the toaster would pass at the time the buyer picked it up the next day. 
C)  The Sale of Goods Act prohibits the seller from exempting himself from liability in the event that the toaster is not fit for purpose. 
D)  There is an implied term of the contract that the seller has good title, i.e., the right to sell it. 
E)  The risk of loss depends on who has possession of the toaster.

Question 12

Consumer protection legislation falls exclusively under federal jurisdiction.

Accepted Answer

A) True 
 B)False

Question 13

The British Columbia Business Institute (BCBI), because of its vast purchasing power, arranged a special plan through which its students could purchase new computers at a greatly discounted price. BCBI took orders from a number of students, along with a deposit as an indication of good faith, and then bought that number of computers from A. Pwee Ltd., the manufacturer. When the students came to BCBI with the balance of the purchase price, a specific machine was selected and sold to them using a serial number, and it was then theirs to take away. By Friday afternoon of delivery week, all but three students had picked up their machines. Jackson had stopped by and completed the purchase arrangements, and a particular machine was identified by number as his. But because he was going out of town for the weekend, he arranged to pick it up on Monday. The two others, Pollock and Kline, had not yet showed up. Unfortunately, some time on the weekend, despite due care by BCBI, thieves smashed into the storeroom and stole the final three computers. Identify the true statement about liability for this loss (presuming the thieves cannot be caught).

Accepted Answer

A)  BCBI will be liable for the entire loss because none of the three students had taken actual delivery. 
B)  BCBI will be liable to Jackson but not to Pollock and Kline. 
C)  The three students will be liable entirely for the losses. 
D)  Jackson will be liable for the loss but Pollock and Kline will not. 
E)  No one will be liable for the loss because this was a crime and not the fault of any of them. 
A)  BCBI will be liable for the entire loss because none of the three students had taken actual delivery. 
B)  BCBI will be liable to Jackson but not to Pollock and Kline. 
C)  The three students will be liable entirely for the losses. 
D)  Jackson will be liable for the loss but Pollock and Kline will not. 
E)  No one will be liable for the loss because this was a crime and not the fault of any of them.

Question 14

Quiet possession of the goods means that the goods must be of merchantable quality and free from any inherent defect.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not federal legislation?

Accepted Answer

A)  Competition Act 
B)  Food and Drug Act 
C)  Hazardous Products Act 
D)  Sale of Goods Act 
E)  Motor Vehicle Safety Act 
A)  Competition Act 
B)  Food and Drug Act 
C)  Hazardous Products Act 
D)  Sale of Goods Act 
E)  Motor Vehicle Safety Act

Question 16

Four students assigned to examine the operations of Mr. Triffle's restaurant supply company found that the business worked in an inefficient manner. On the students' recommendation, Triffle went to Computerheaven Ltd. and explained to the salesperson the needs of the company. Computerheaven sold the company a Server system for $58,000. The system was in operation less than one hour when it malfunctioned and burned one of Triffle's employees. The malfunction was not the fault of the seller or the buyer, but of the manufacturer. Which one of the following actions arise from these facts?

Accepted Answer

A)  Triffle's company v. Computerheaven for breach of a warranty because the system was not of merchantable quality 
B)  Triffle's company v. Computerheaven for breach of a condition because the system was not fit for purpose 
C)  Triffle's company v. the manufacturer for frustration 
D)  Triffle's employee v. Computerheaven for negligence 
E)  Triffle's employee v. Triffle's company for breach of condition 
A)  Triffle's company v. Computerheaven for breach of a warranty because the system was not of merchantable quality 
B)  Triffle's company v. Computerheaven for breach of a condition because the system was not fit for purpose 
C)  Triffle's company v. the manufacturer for frustration 
D)  Triffle's employee v. Computerheaven for negligence 
E)  Triffle's employee v. Triffle's company for breach of condition

Question 17

Distinguish among a C.I.F. contract, an F.O.B. contract, and a C.O.D. contract.

Accepted Answer

All of these deal with title and risk. A

Question 18

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

Accepted Answer

A)  The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods. 
B)  When there is a conflict between the principle of caveat emptor and the provisions of the Act, the principle prevails over the Act. 
C)  Because caveat emptor applies to the quality of goods, the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking. 
D)  The Act provides a number of implied contractual terms to supplement those expressed in the contract, and those implied terms override the principle of caveat emptor, when in conflict with it. 
E)  The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods. 
A)  The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods. 
B)  When there is a conflict between the principle of caveat emptor and the provisions of the Act, the principle prevails over the Act. 
C)  Because caveat emptor applies to the quality of goods, the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking. 
D)  The Act provides a number of implied contractual terms to supplement those expressed in the contract, and those implied terms override the principle of caveat emptor, when in conflict with it. 
E)  The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods.

Question 19

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

Accepted Answer

A)  Al picked out and contracted for a particular computer, and an additional component had to be installed before it was in deliverable state. It was installed, but Al had not been notified that it was ready. 
B)  George ordered a Pentium computer system with 8 gigabytes of RAM and a 1 terabyte hard drive advertised by Kicks Computers. 
C)  Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. 
D)  Yates chose which of the desks 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)  Al picked out and contracted for a particular computer, and an additional component had to be installed before it was in deliverable state. It was installed, but Al had not been notified that it was ready. 
B)  George ordered a Pentium computer system with 8 gigabytes of RAM and a 1 terabyte hard drive advertised by Kicks Computers. 
C)  Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. 
D)  Yates chose which of the desks 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 20

Explain the significance of a "manufacturer's warranty" on products such as a camera and a radio, and discuss why it's necessary with respect to the Sale of Goods Act.

Accepted Answer

It is important that students first show

Give examples of several different types of industries that are specifically controlled by consumer protection legislation.

A bill of exchange is an order by one person to another to pay money to a third.

Which of the following is not controlled by consumer protection legislation?

Distinguish between a sale and an agreement to sell.

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

The general rule is that risk follows title.

In which of the following would the title pass to the buyer only when the goods were "unconditionally appropriated" with assent?

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

Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract?

Give examples of three federal acts that have consumer protection aspects to them.

If you buy a toaster from a second-hand dealer of small appliances, which of the following is true?

Consumer protection legislation falls exclusively under federal jurisdiction.

Quiet possession of the goods means that the goods must be of merchantable quality and free from any inherent defect.

Which of the following is not federal legislation?

Distinguish among a C.I.F. contract, an F.O.B. contract, and a C.O.D. contract.

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

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

Explain the significance of a "manufacturer's warranty" on products such as a camera and a radio, and discuss why it's necessary with respect to the Sale of Goods Act.

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

Exam 16: Sales and Consumer Protection

Give examples of several different types of industries that are specifically controlled by consumer protection legislation.

A bill of exchange is an order by one person to another to pay money to a third.

Which of the following is not controlled by consumer protection legislation?

Distinguish between a sale and an agreement to sell.

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

The general rule is that risk follows title.

In which of the following would the title pass to the buyer only when the goods were "unconditionally appropriated" with assent?

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

Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract?

Give examples of three federal acts that have consumer protection aspects to them.

If you buy a toaster from a second-hand dealer of small appliances, which of the following is true?

Consumer protection legislation falls exclusively under federal jurisdiction.

Quiet possession of the goods means that the goods must be of merchantable quality and free from any inherent defect.

Which of the following is not federal legislation?

Distinguish among a C.I.F. contract, an F.O.B. contract, and a C.O.D. contract.

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

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

Explain the significance of a "manufacturer's warranty" on products such as a camera and a radio, and discuss why it's necessary with respect to the Sale of Goods Act.

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