Question 1

Explain the rights conveyed in an "unpaid seller's lien."

Accepted Answer

The seller, so long as the goods are in

Question 2

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

Accepted Answer

These are bills of exchange, c

Question 3

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 4

Industry Canada was established under the Department of Industry Act.

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

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

A type of sales practice in which the purchaser supplies a seller with a list of friends or acquaintances and receives a benefit when sales are made to those people is known as

Accepted Answer

A)  referral selling. 
B)  direct sales. 
C)  one-off marketing. 
D)  preferred selling. 
E)  consumer sales. 
A)  referral selling. 
B)  direct sales. 
C)  one-off marketing. 
D)  preferred selling. 
E)  consumer sales.

Question 9

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 10

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 11

What are the rights of the purchasers when the goods do not match the description?

Accepted Answer

This is a breach of condition,

Question 12

Which of the following is False with regard to a holder in due course?

Accepted Answer

A)  A holder in due course cannot be an immediate party. 
B)  A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment. 
C)  A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud. 
D)  A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque. 
E)  A holder in due course is the same as the drawee or acceptor. 
A)  A holder in due course cannot be an immediate party. 
B)  A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment. 
C)  A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud. 
D)  A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque. 
E)  A holder in due course is the same as the drawee or acceptor.

Question 13

When the sale of goods is involved and a specific price has not been agreed upon, a reasonable price must be paid.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

Students should note that when creditors

Question 15

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 16

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?

Accepted Answer

A)  The Interest Act provides that in any contract where interest is payable, interest must be stated as an annual rate. 
B)  Because the actual interest rate was over 1 percent per month, the interest provision was contrary to the Criminal Code. 
C)  It is unlawful to charge interest to a person in a vulnerable state. 
D)  Because Tahmineh did not receive independent legal advice, the loan agreement is void. 
E)  Because Tahmineh was upset over her roommate moving out, she lacked capacity to agree to the terms of the contract. 
A)  The Interest Act provides that in any contract where interest is payable, interest must be stated as an annual rate. 
B)  Because the actual interest rate was over 1 percent per month, the interest provision was contrary to the Criminal Code. 
C)  It is unlawful to charge interest to a person in a vulnerable state. 
D)  Because Tahmineh did not receive independent legal advice, the loan agreement is void. 
E)  Because Tahmineh was upset over her roommate moving out, she lacked capacity to agree to the terms of the contract.

Question 17

Explain the liability of the parties on an "accepted" bill of exchange.

Accepted Answer

The act of acceptance is done when the d

Question 18

With respect to a sale of goods, which one of the following statements is False?

Accepted Answer

A)  In a retail sale of new goods, the seller can always exclude liability for breach of all implied terms in the Sale of Goods Act by a carefully drawn exemption clause. 
B)  A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in payment for goods that he still possesses has a choice of rights against the goods themselves and an action for breach of contract against the buyer. 
C)  The Sale of Goods Act provides terms that will be taken to be part of a contract for goods even though the parties failed to mention anything about such matters. 
D)  In commercial transactions, a buyer of goods has the protection of the "fit for purpose" provision, but legislation enables the seller to exempt himself from liability. 
E)  The Sale of Goods Act permits commercial parties to exclude the Act if they mutually want to. 
A)  In a retail sale of new goods, the seller can always exclude liability for breach of all implied terms in the Sale of Goods Act by a carefully drawn exemption clause. 
B)  A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in payment for goods that he still possesses has a choice of rights against the goods themselves and an action for breach of contract against the buyer. 
C)  The Sale of Goods Act provides terms that will be taken to be part of a contract for goods even though the parties failed to mention anything about such matters. 
D)  In commercial transactions, a buyer of goods has the protection of the "fit for purpose" provision, but legislation enables the seller to exempt himself from liability. 
E)  The Sale of Goods Act permits commercial parties to exclude the Act if they mutually want to.

Question 19

O'Neil bought a new car from a Chevrolet dealer for family use. The contract he signed contained the following clause: "The parties hereto expressly agree that the dealer is not liable for any breach of condition or warranty, express or implied." He also bought a used car radio from the dealer for his old car, which he was keeping. The contract for the radio was not in writing. The car did not run properly and O'Neil had it back in the shop seven times in three weeks. It was finally determined that the problem was due to a faulty transmission. Unfortunately, the car radio didn't work either. On these facts, which of the following is true?

Accepted Answer

A)  The exemption clause in the contract for the car would succeed in defeating an action by O'Neil against the dealer for breach of contract. 
B)  O'Neil has an action for breach of contract against the dealer because the exemption clause does not defeat the dealer's obligation to deliver a properly performing car (fit for use) in a consumer transaction. 
C)  The contract for the radio is not covered by the Sale of Goods Act because the radio was not new. 
D)  The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E)  The exemption clause does not apply to either transaction because both involve fundamental breaches of contract. 
A)  The exemption clause in the contract for the car would succeed in defeating an action by O'Neil against the dealer for breach of contract. 
B)  O'Neil has an action for breach of contract against the dealer because the exemption clause does not defeat the dealer's obligation to deliver a properly performing car (fit for use) in a consumer transaction. 
C)  The contract for the radio is not covered by the Sale of Goods Act because the radio was not new. 
D)  The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E)  The exemption clause does not apply to either transaction because both involve fundamental breaches of contract.

Question 20

Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.

Accepted Answer

One of the most important provisions of

Explain the rights conveyed in an "unpaid seller's lien."

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

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?

Industry Canada was established under the Department of Industry Act.

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

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

A type of sales practice in which the purchaser supplies a seller with a list of friends or acquaintances and receives a benefit when sales are made to those people is known as

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

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

What are the rights of the purchasers when the goods do not match the description?

Which of the following is False with regard to a holder in due course?

When the sale of goods is involved and a specific price has not been agreed upon, a reasonable price must be paid.

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

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

Explain the liability of the parties on an "accepted" bill of exchange.

With respect to a sale of goods, which one of the following statements is False?

Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.

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

Explain the rights conveyed in an "unpaid seller's lien."

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

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?

Industry Canada was established under the Department of Industry Act.

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

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

A type of sales practice in which the purchaser supplies a seller with a list of friends or acquaintances and receives a benefit when sales are made to those people is known as

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

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

What are the rights of the purchasers when the goods do not match the description?

Which of the following is False with regard to a holder in due course?

When the sale of goods is involved and a specific price has not been agreed upon, a reasonable price must be paid.

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

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

Explain the liability of the parties on an "accepted" bill of exchange.

With respect to a sale of goods, which one of the following statements is False?

Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.

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