Question 1

Which of the following statements is correct with respect to the Sale of Goods Act?

Accepted Answer

A)  The parties are restricted to contract out of any of the terms of the Sale of Goods Act. 
B)  Some of the terms of the Sale of Goods Act are implied in the contract of sale. 
C)  The terms included in the Sale of Goods Act override the terms agreed upon by the parties to such a sale of goods. 
D)  The Sale of Goods Act does apply to the sale of land. 
E)  The Sale of Goods Act does apply to the assignment of a contractual claim. 
A)  The parties are restricted to contract out of any of the terms of the Sale of Goods Act. 
B)  Some of the terms of the Sale of Goods Act are implied in the contract of sale. 
C)  The terms included in the Sale of Goods Act override the terms agreed upon by the parties to such a sale of goods. 
D)  The Sale of Goods Act does apply to the sale of land. 
E)  The Sale of Goods Act does apply to the assignment of a contractual claim.

Question 2

For an instrument to be negotiable, it must be an unconditional promise to pay a specific amount at some future date or on demand.

Accepted Answer

A) True 
 B)False

Question 3

Explain the protection provided by the Unconscionable Transactions Relief Act (or Unconscionable Transactions Act, depending on the jurisdiction).

Accepted Answer

Where someone has been taken advantage o

Question 4

Joe left his car at Harry's tire store, asking Harry to put a particular model of tire from his stock onto the vehicle while Joe went into his office in town. During the day, the tires were installed on the car, and Joe returned that evening to pick up the car. At what point did title on the tires transfer?

Accepted Answer

This is Rule #5. Title transfers when th

Question 5

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder, what risk does he take?

Accepted Answer

If the note is disho

Question 6

Explain what is meant by the term "consumer transactions."

Accepted Answer

These are purchases by individ

Question 7

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?

Accepted Answer

A)  The visitor could sue both seller and the manufacturer. 
B)  Vanderhoort could sue only seller. 
C)  The damages to be claimed from the seller are limited to the total charged for the sale and installation. 
D)  If the reason for the fire was a defect caused at the factory, Vanderhoort could only sue the manufacturer for negligence. 
E)  If Vanderhoort successfully sued the seller, the seller could then sue the manufacturer. 
A)  The visitor could sue both seller and the manufacturer. 
B)  Vanderhoort could sue only seller. 
C)  The damages to be claimed from the seller are limited to the total charged for the sale and installation. 
D)  If the reason for the fire was a defect caused at the factory, Vanderhoort could only sue the manufacturer for negligence. 
E)  If Vanderhoort successfully sued the seller, the seller could then sue the manufacturer.

Question 8

When a buyer defaults, the seller has an unpaid ________ against the goods.

Accepted Answer

The answer of When a buyer defaults, the seller has...

Question 9

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

Accepted Answer

A)  The oral lease of an apartment for less than two years 
B)  A heart transplant operation 
C)  The sale of an office building 
D)  The sale of shares in a corporation 
E)  The sale of a puppy to be given as a present by the buyer 
A)  The oral lease of an apartment for less than two years 
B)  A heart transplant operation 
C)  The sale of an office building 
D)  The sale of shares in a corporation 
E)  The sale of a puppy to be given as a present by the buyer

Question 10

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future, title always transfers at the point of delivery.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  "We hired you as a bartender, not to join the guests and teach them Texas line dancing!" 
B)  "I paid you to tune the car, but it obviously wasn't done!" 
C)  "Pursuant to the contract, the buyer of the house tendered $50,000 on the closing date, but the seller had changed his mind." 
D)  "There's a small dead insect in my soup!" 
E)  "The deal was this: Fred was to assign to Paul Fred's accounts receivable, and Paul would pay him $5000 cash, but Fred did not honour his promise." 
A)  "We hired you as a bartender, not to join the guests and teach them Texas line dancing!" 
B)  "I paid you to tune the car, but it obviously wasn't done!" 
C)  "Pursuant to the contract, the buyer of the house tendered $50,000 on the closing date, but the seller had changed his mind." 
D)  "There's a small dead insect in my soup!" 
E)  "The deal was this: Fred was to assign to Paul Fred's accounts receivable, and Paul would pay him $5000 cash, but Fred did not honour his promise."

Question 12

With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is False?

Accepted Answer

A)  Even after the seller has given possession of the goods to the buyer, he may be able to get them back under the provisions of the Bankruptcy and Insolvency Act. 
B)  Before a court will award a remedy, generally it will decide whether the breach was of a condition or a warranty. 
C)  Where a buyer has continued to push a breaching seller for performance, he could lose the right to discharge the contract in the event of a breach of a condition. 
D)  Whether a seller can sue for the price or damages depends upon whether or not title has passed. 
E)  The Sale of Goods Act excludes the possibility of the various equitable remedies such as specific performance. 
A)  Even after the seller has given possession of the goods to the buyer, he may be able to get them back under the provisions of the Bankruptcy and Insolvency Act. 
B)  Before a court will award a remedy, generally it will decide whether the breach was of a condition or a warranty. 
C)  Where a buyer has continued to push a breaching seller for performance, he could lose the right to discharge the contract in the event of a breach of a condition. 
D)  Whether a seller can sue for the price or damages depends upon whether or not title has passed. 
E)  The Sale of Goods Act excludes the possibility of the various equitable remedies such as specific performance.

Question 13

The general rule is that risk follows title.

Accepted Answer

A) True 
 B)False

Question 14

Alf bought a car from Mr. Wojchu for $10,000. Shortly afterwards, a bailiff, acting for a lender with a security interest in the car with payments in default, seized the car. The financing statement for the security interest had been properly registered in time. Alf wants to sue Mr. Wojchu. Which of the following correctly sets out his legal position?

Accepted Answer

A)  Alf will win. Mr. Wojchu has failed to deliver clear title. 
B)  Alf will win. The goods were not of merchantable quality. 
C)  Wojchu will lose. Risk follows title. 
D)  Alf will lose. Caveat emptor applies. 
E)  Alf will lose. It was his obligation to search the title and he failed to. 
A)  Alf will win. Mr. Wojchu has failed to deliver clear title. 
B)  Alf will win. The goods were not of merchantable quality. 
C)  Wojchu will lose. Risk follows title. 
D)  Alf will lose. Caveat emptor applies. 
E)  Alf will lose. It was his obligation to search the title and he failed to.

Question 15

What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.

Accepted Answer

A bill of lading is a document given by

Question 16

Bob, owner of a pizza business, went with his wife to pick out a new family car. Since they already knew the make and model they wanted, it did not take long before the contract was signed by the wife for a new 2017 Chevrolet. While the paperwork was being done, Bob talked with another salesman about the used cars on the lot, telling him that he needed a mechanically sound car but not a new car for his business. The salesman showed him one that he said was in good shape and would give several years of service. Bob made a very low offer that the salesman accepted, much to Bob's surprise. The contract Bob signed, like his wife's, contained a clause exempting the seller, B & S Motors, from liability for breach of any warranties, including any implied warranties under the Sale of Goods Act. A few weeks after the sale, the wife and daughter were injured in an accident caused by a faulty steering mechanism in the new car. Furthermore, the used car was not in good shape and lasted weeks, not years. On these facts, which of the following is true?

Accepted Answer

A)  An exemption clause is always effective in exempting the seller from liability. 
B)  The wife could not succeed in an action against B & S Motors because there is an exemption clause in the contract of sale. 
C)  The daughter could sue B & S Motors for breach of contract. 
D)  The daughter could sue B & S Motors for negligence. 
E)  If legislation in the province prohibits a seller from overriding the requirement that goods be fit and of merchantable quality in consumer transactions, the wife may win for breach of contract. 
A)  An exemption clause is always effective in exempting the seller from liability. 
B)  The wife could not succeed in an action against B & S Motors because there is an exemption clause in the contract of sale. 
C)  The daughter could sue B & S Motors for breach of contract. 
D)  The daughter could sue B & S Motors for negligence. 
E)  If legislation in the province prohibits a seller from overriding the requirement that goods be fit and of merchantable quality in consumer transactions, the wife may win for breach of contract.

Question 17

Which of the following statements accurately states the law with respect to consumer transactions?

Accepted Answer

A)  Where the court decides that a transaction was unconscionable, that transaction is unenforceable by the buyer. 
B)  Where a consumer has been subject to a deceptive or unconscionable act or practice, he may recover damages and an order of rescission. 
C)  In all consumer transactions, there is a cooling-off period of seven days in which the consumer can call off the deal. 
D)  Where a supplier engages in a deceptive or unconscionable act, he is neither subject to fines nor jail. 
E)  A deceptive or unconscionable supplier does not lose his right to carry on business in the province. 
A)  Where the court decides that a transaction was unconscionable, that transaction is unenforceable by the buyer. 
B)  Where a consumer has been subject to a deceptive or unconscionable act or practice, he may recover damages and an order of rescission. 
C)  In all consumer transactions, there is a cooling-off period of seven days in which the consumer can call off the deal. 
D)  Where a supplier engages in a deceptive or unconscionable act, he is neither subject to fines nor jail. 
E)  A deceptive or unconscionable supplier does not lose his right to carry on business in the province.

Question 18

Explain what is meant by a "cooling-off period."

Accepted Answer

A statutorily defined period d

Question 19

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Accepted Answer

1. Their free transferability from holde

Question 20

Which of the following statements is correct with respect to a contract for the purchase of goods?

Accepted Answer

A)  Where a breach of a condition is involved, the obligation of the victim of the breach is ended and that person need not perform her side of the agreement. 
B)  Where a breach of a condition is involved, the contract is still in force and the victim of the breach must still perform her side of the agreement. 
C)  Where a breach of a warranty is involved, the obligation of the victim of the breach is ended and that person need not perform her side of the agreement. 
D)  The purpose of the inclusion of a warranty in a sale of goods contract is to force the seller of those goods to repair the goods if they are defective. 
E)  The purchaser has a claim against the manufacturer only if the goods purchased are defective. 
A)  Where a breach of a condition is involved, the obligation of the victim of the breach is ended and that person need not perform her side of the agreement. 
B)  Where a breach of a condition is involved, the contract is still in force and the victim of the breach must still perform her side of the agreement. 
C)  Where a breach of a warranty is involved, the obligation of the victim of the breach is ended and that person need not perform her side of the agreement. 
D)  The purpose of the inclusion of a warranty in a sale of goods contract is to force the seller of those goods to repair the goods if they are defective. 
E)  The purchaser has a claim against the manufacturer only if the goods purchased are defective.

Which of the following statements is correct with respect to the Sale of Goods Act?

For an instrument to be negotiable, it must be an unconditional promise to pay a specific amount at some future date or on demand.

Explain the protection provided by the Unconscionable Transactions Relief Act (or Unconscionable Transactions Act, depending on the jurisdiction).

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder, what risk does he take?

Explain what is meant by the term "consumer transactions."

When a buyer defaults, the seller has an unpaid ________ against the goods.

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

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future, title always transfers at the point of delivery.

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

With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is False?

The general rule is that risk follows title.

What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.

Which of the following statements accurately states the law with respect to consumer transactions?

Explain what is meant by a "cooling-off period."

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Which of the following statements is correct with respect to a contract for the purchase of 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

Which of the following statements is correct with respect to the Sale of Goods Act?

For an instrument to be negotiable, it must be an unconditional promise to pay a specific amount at some future date or on demand.

Explain the protection provided by the Unconscionable Transactions Relief Act (or Unconscionable Transactions Act, depending on the jurisdiction).

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder, what risk does he take?

Explain what is meant by the term "consumer transactions."

When a buyer defaults, the seller has an unpaid ________ against the goods.

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

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future, title always transfers at the point of delivery.

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

With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is False?

The general rule is that risk follows title.

What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.

Which of the following statements accurately states the law with respect to consumer transactions?

Explain what is meant by a "cooling-off period."

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Which of the following statements is correct with respect to a contract for the purchase of 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