Question 1

The purpose of the federal Competition Act is to prevent competition among retailers.

Accepted Answer

A) True 
 B)False

Question 2

Risk refers to potential loss due to the destruction or damage of the goods.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A)  "Waiter, there is a dead fly in my spaghetti." 
B)  "I ask for a trim! You've cut off five inches!!!" 
C)  "I brought in five shirts to be laundered and you are returning only four to me!" 
D)  "I agreed to give you a dozen old campaign buttons for that original signature of the Prime Minister, but received the signature of the Governor General." 
E)  "Today is the closing date and I am willing to tender the full price in cash, namely $70,000, for the farm, and you are now telling me that you have no intention of closing." 
A)  "Waiter, there is a dead fly in my spaghetti." 
B)  "I ask for a trim! You've cut off five inches!!!" 
C)  "I brought in five shirts to be laundered and you are returning only four to me!" 
D)  "I agreed to give you a dozen old campaign buttons for that original signature of the Prime Minister, but received the signature of the Governor General." 
E)  "Today is the closing date and I am willing to tender the full price in cash, namely $70,000, for the farm, and you are now telling me that you have no intention of closing."

Question 5

The protection of consumers is solely a provincial responsibility.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

Conditions are impor

Question 7

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 8

Which of the following complaints would lead to a successful action under the Sale of Goods Act?

Accepted Answer

A)  "I left the car here with orders to adjust the front lights; I did not order a wheel alignment and I don't want to pay for it!" 
B)  "I hired you to tutor me for my chemistry exam, not to tell me your personal problems week after week!" 
C)  "I paid $1000 for government bonds, but you have sent me shares in a private company that I never heard of!" 
D)  "What do you mean that you are not going through with the contract to sell me that lot? I have workers ready to start construction one week after the closing date!" 
E)  "I paid a lot of money for this car and this is the third time I've had it back in the first week. Something is seriously wrong with it." 
A)  "I left the car here with orders to adjust the front lights; I did not order a wheel alignment and I don't want to pay for it!" 
B)  "I hired you to tutor me for my chemistry exam, not to tell me your personal problems week after week!" 
C)  "I paid $1000 for government bonds, but you have sent me shares in a private company that I never heard of!" 
D)  "What do you mean that you are not going through with the contract to sell me that lot? I have workers ready to start construction one week after the closing date!" 
E)  "I paid a lot of money for this car and this is the third time I've had it back in the first week. Something is seriously wrong with it."

Question 9

With regard to a contract for the sale and purchase of goods, which of the following is False?

Accepted Answer

A)  Title to the goods may pass to the buyer at the time of contract. 
B)  Contracts for the sale of goods valued at more than $2 must be in writing in order to be enforceable. 
C)  The Act provides a number of implied terms that may be added to the contract if the parties failed to mention those particular matters. 
D)  To guard against loss, a buyer of costly goods should have his insurance in place by the time that title passes to him, because the person with title generally bears the loss. 
E)  The buyer of used goods has the protection of the implied terms of the Sale of Goods Act, but the Act does not automatically void an exemption clause in a contract for the sale of used goods. 
A)  Title to the goods may pass to the buyer at the time of contract. 
B)  Contracts for the sale of goods valued at more than $2 must be in writing in order to be enforceable. 
C)  The Act provides a number of implied terms that may be added to the contract if the parties failed to mention those particular matters. 
D)  To guard against loss, a buyer of costly goods should have his insurance in place by the time that title passes to him, because the person with title generally bears the loss. 
E)  The buyer of used goods has the protection of the implied terms of the Sale of Goods Act, but the Act does not automatically void an exemption clause in a contract for the sale of used goods.

Question 10

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

Accepted Answer

If injury or damage results from their u

Question 11

Which of the following is False with respect to the law of negotiable instruments?

Accepted Answer

A)  Negotiable instruments are controlled by provincial legislation. 
B)  The Bills of Exchange Act is federal legislation. 
C)  The Bills of Exchange Act governs the area of negotiable instruments. 
D)  A holder in due course is in a better position than he would be as the receiver of contractual rights through assignment. 
E)  A bill of exchange involves three parties. 
A)  Negotiable instruments are controlled by provincial legislation. 
B)  The Bills of Exchange Act is federal legislation. 
C)  The Bills of Exchange Act governs the area of negotiable instruments. 
D)  A holder in due course is in a better position than he would be as the receiver of contractual rights through assignment. 
E)  A bill of exchange involves three parties.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

John bought a car for $5000. Shortly afterwards, a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car. In which of the following circumstances will John be least likely to recover what he is owed?

Accepted Answer

A)  If the seller told John that the car was free and clear of any encumbrances even though John didn't ask 
B)  If the seller told John that the car was free and clear of any encumbrances after John asked 
C)  If neither John nor the seller said anything about whether the car was free and clear of encumbrances 
D)  If John forgot to check the registry for liens or encumbrances 
E)  If the seller can no longer be located 
A)  If the seller told John that the car was free and clear of any encumbrances even though John didn't ask 
B)  If the seller told John that the car was free and clear of any encumbrances after John asked 
C)  If neither John nor the seller said anything about whether the car was free and clear of encumbrances 
D)  If John forgot to check the registry for liens or encumbrances 
E)  If the seller can no longer be located

Question 14

Distinguish between a cheque and a bill of exchange.

Accepted Answer

Both of these instruments involve three

Question 15

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?

Accepted Answer

A)  Parties cannot contract out of the Sale of Goods Act. 
B)  An exemption clause is effective in all cases except when dealing with a fundamental breach. 
C)  An exemption clause that is inconsistent with the Sales of Goods Act is illegal and therefore void. 
D)  Except in cases involving a sale of goods, the presence of an exemption clause will protect a party from any misconduct. 
E)  Even in the face of a fundamental breach, it is possible for parties to exempt themselves from liability. 
A)  Parties cannot contract out of the Sale of Goods Act. 
B)  An exemption clause is effective in all cases except when dealing with a fundamental breach. 
C)  An exemption clause that is inconsistent with the Sales of Goods Act is illegal and therefore void. 
D)  Except in cases involving a sale of goods, the presence of an exemption clause will protect a party from any misconduct. 
E)  Even in the face of a fundamental breach, it is possible for parties to exempt themselves from liability.

Question 16

If the contract doesn't say who bears the loss if an item is lost or stolen, the Sale of Goods Act says risk goes with title. If the contract doesn't say when the title will pass, the Sale of Goods Act implies when it will pass. In which of the following will the statute imply that title will pass to the buyer at the time of the contract?

Accepted Answer

A)  George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday. 
B)  Maureen contracts for Ms. Roberts' next year's pumpkin crop. 
C)  Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container. 
D)  Azar goes into a store specializing in old woodworking tools. He chooses a $1000 tooling machine. The contract provides that it will be delivered to his workshop the next morning and he will pay for it in one month. 
E)  While at Sears, Preston decides to buy the style of sofa he sees on display. He pays cash and the store arranges to have one like it, covered in the material he selects, delivered directly to him from the factory. 
A)  George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday. 
B)  Maureen contracts for Ms. Roberts' next year's pumpkin crop. 
C)  Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container. 
D)  Azar goes into a store specializing in old woodworking tools. He chooses a $1000 tooling machine. The contract provides that it will be delivered to his workshop the next morning and he will pay for it in one month. 
E)  While at Sears, Preston decides to buy the style of sofa he sees on display. He pays cash and the store arranges to have one like it, covered in the material he selects, delivered directly to him from the factory.

Question 17

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is False.

Accepted Answer

A)  The person who signs and issues the cheque is the drawer. The person who is owed the money and receives the cheque is the drawee. 
B)  A person who signs a draft is a drawer; the party commanded to pay is the drawee. 
C)  An acceptor of a draft will become liable to the payee for the amount of the draft. 
D)  The payee of a negotiable instrument can negotiate the instrument to a holder who will be remote in relation to the drawer. 
E)  The person who signs a promissory note is the maker of the note and, unlike a cheque, the note will not include a drawee. 
A)  The person who signs and issues the cheque is the drawer. The person who is owed the money and receives the cheque is the drawee. 
B)  A person who signs a draft is a drawer; the party commanded to pay is the drawee. 
C)  An acceptor of a draft will become liable to the payee for the amount of the draft. 
D)  The payee of a negotiable instrument can negotiate the instrument to a holder who will be remote in relation to the drawer. 
E)  The person who signs a promissory note is the maker of the note and, unlike a cheque, the note will not include a drawee.

Question 18

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 19

In what way does the Interest Act affect contracts under which interest is payable?

Accepted Answer

The Interest Act provides that

Question 20

What's the main purpose of the Sale of Goods Act?

Accepted Answer

To provide missing terms that

The purpose of the federal Competition Act is to prevent competition among retailers.

Risk refers to potential loss due to the destruction or damage of the goods.

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

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

The protection of consumers is solely a provincial responsibility.

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

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

Which of the following complaints would lead to a successful action under the Sale of Goods Act?

With regard to a contract for the sale and purchase of goods, which of the following is False?

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

Which of the following is False with respect to the law of negotiable instruments?

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

John bought a car for $5000. Shortly afterwards, a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car. In which of the following circumstances will John be least likely to recover what he is owed?

Distinguish between a cheque and a bill of exchange.

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is False.

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

In what way does the Interest Act affect contracts under which interest is payable?

What's the main purpose of 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

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Exam 16: Sales and Consumer Protection

The purpose of the federal Competition Act is to prevent competition among retailers.

Risk refers to potential loss due to the destruction or damage of the goods.

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

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

The protection of consumers is solely a provincial responsibility.

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

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

Which of the following complaints would lead to a successful action under the Sale of Goods Act?

With regard to a contract for the sale and purchase of goods, which of the following is False?

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

Which of the following is False with respect to the law of negotiable instruments?

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

John bought a car for $5000. Shortly afterwards, a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car. In which of the following circumstances will John be least likely to recover what he is owed?

Distinguish between a cheque and a bill of exchange.

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is False.

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

In what way does the Interest Act affect contracts under which interest is payable?

What's the main purpose of 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