Exam 16: Sales and Consumer Protection

When goods are en route to the buyer, upon the buyer's default, the seller has the right to intercept the goods and retake possession from the transporter as long as the goods have not yet reached the buyer. What is this right called?

Consumer protection legislation falls exclusively under federal jurisdiction.

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

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

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?

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

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?

Explain what kind of protection is provided by the Trade Practices Act (Unfair Practices Act, Business Practices Act, Fair Trading Act, etc. depending on the jurisdiction).

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

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

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?

Explain what is meant by "referral selling."

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

For the purpose of building a playhouse for his sons, Andy went to Lumberlore Ltd. and bought, with his credit card and without talking to a salesperson, the following things: a drill, lumber, and a six-foot step ladder. While working on the project, Andy noted that the drill worked but it was not powerful enough to drill into the 4×4-inch posts the playhouse needed for support. When he went toward the house to get his car keys, he found his wife unconscious. She had used the ladder to take some leaves out of the gutters, and it had buckled under her weight because of its faulty design. Which of the following is true?

The Gift Card Regulation stipulates that gift cards are allowed to have expiry dates.

Under the Consumer Packaging and Labelling Act, certain dangerous drugs that are useful are allowed to be sold under controlled conditions.

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.

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

Sales made to consumers at their dwellings or places of business are known as ________.

With F.O.B. contracts, title and risk always transfer at the seller's place of business.