Exam 16: Sales and Consumer Protection

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Which of the following is not a federal statute with a consumer protection aspect?

(Multiple Choice)
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Vanderhoort contacted Prinz to buy a new furnace that burned both wood and oil. Prinz, who bought the furnace directly from the manufacturer, also installed it. The furnace was defective. It malfunctioned and caused a fire that destroyed the house of the buyer and the belongings of a visitor. Which of the following accurately sets out the legal position of the parties?

(Multiple Choice)
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The mission of the Consumer Protection Act is to protect and promote competitive markets and enable informed consumer choice in Canada.

(True/False)
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Rick has just been told that he will have to undergo a second operation because the results of his first operation were not as expected. In the first operation, a small device was inserted near his damaged knee to stimulate bone growth with electrical impulses. The device was not working. The operation was performed by Dr. Jones, who is employed by St. Everybody's hospital. There is evidence that the device itself is faulty. The hospital had purchased the device from Medisci Ltd., which had purchased it directly from the manufacturer, Electrobo Ltd. The operation is not covered by any medical plan, and it will cost Rick $5000. Rick is very upset and wants to sue for damages. Which of the following is correct with respect to who Rick could sue and why?

(Multiple Choice)
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With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is false?

(Multiple Choice)
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With regard to negotiable instruments, which of the following is false?

(Multiple Choice)
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With respect to a sale of goods, which one of the following statements is true?

(Multiple Choice)
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Discuss, in the context of consumer protection, how legislative and other changes have helped to overcome the obstacle created by the principle of privity.

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

(Multiple Choice)
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Jones did work for Smith, who agreed to pay him in advance by cheque. Smith prepared a cheque for Jones. In which of the following situations would Smith have to honour the cheque to Green after it had been transferred to her by Jones?

(Multiple Choice)
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What's the main purpose of the Sale of Goods Act?

(Essay)
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Jones walked into a new car lot, pointed to a specific car, and said, "I'll take that one." Sam, the operator of the car lot, explained that there was a certain amount of pre-delivery preparation that had to take place before the car could be delivered, and that it would be ready for the purchaser two days later. It was agreed that the purchase price would be paid at that time. Explain who bears the risk in the meantime.

(Essay)
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Explain under what circumstances the sale of goods must be evidenced by writing.

(Essay)
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The key issues involving gift cards relate to expiry dates and fees.

(True/False)
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In the context of sale of goods, products sold on the Internet, by catalogue, by mail order, or other forms of distance shopping, are being sold in what way?

(Short Answer)
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Explain what is meant by "referral selling."

(Essay)
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Read the following statements with regard to the parties involved with negotiable instruments and indicate which is false.

(Multiple Choice)
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Tahmineh was very upset to find herself short of cash after her roommate had moved out without paying her share of the month's expenses. Tahmineh had no choice but to borrow money from QuickMoney Loans. Without getting legal advice, she signed a contract in which she agreed to pay back the money along with interest. The interest clause provided that interest was to be calculated at the rate of 2 percent per month. Tahmineh failed to pay back all of the funds and QuickMoney Loans sued her. What argument might she successfully raise to limit the amount of her obligation?

(Multiple Choice)
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Define the mission of the Consumer Packaging and Labelling Act.

(Essay)
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When goods are traded for other goods, the Sale of Goods Act does not apply.

(True/False)
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