Exam 16: Sales and Consumer Protection

Discuss the function of the federal Competition Act and the role it plays in consumer protection.

There is a cooling-off period in all consumer sales transactions where the purchaser of goods has a period of time in which to change her mind.

Explain what common law recourse there is against manufacturers when they manufacture a faulty or dangerous product.

Distinguish between a promissory note and a bill of exchange.

What is the effect of an unpaid seller's lien?

A holder in due course is in the same position as the person from whom a negotiable instrument was received.

Bob and Barb went into Logan Drugs, a self-service drug store. She bought some packaged cookies and he bought some Tilox, a cleaning solvent for tile that he hoped would remove greasy dirt from a painted kitchen chair. Because Bob wanted to work on the chair, Barb set their son, Keith, at the kitchen table with some cookies so he could watch without being in the way. After he had two cookies, Barb noticed that there were worms in the cookies. She took Keith and the cookies (made in Vancouver) to the doctor. While they were away, Bob learned too late that the Tilox did take off the grease but also the paint. The directions advised against using the product on wood or painted surfaces. On these facts, which of the following is true?

When goods are bought by sample, what obligation is implied into the contract on the seller?

Distinguish between conditions and warranties in a sale of goods contract.

Jones walked into Sam's TV shop and said, pointing to a particular television, "I'll take that one." They wrote up the deal, and Jones was to return the next day to pay for it and pick it up. Explain who bears the risk in the meantime.

Unconscionable transactions statutes apply to any transaction where the price paid is not fair or reasonable.

The common law doctrine of unconscionability in contract law can also be applied to consumer situations.

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.