Exam 16: Sales and Consumer Protection

A warranty under the Sale of Goods Act is a condition the breach of which will allow the victim of the breach to refuse to go through with their side of the agreement.

Four students assigned to examine the operations of Mr. Triffle's restaurant supply company found that the business worked in an inefficient manner. On the students' recommendation, Triffle went to Computerheaven Ltd. and explained to the salesperson the needs of the company. Computerheaven sold the company a Server system for $58,000. The system was in operation less than one hour when it malfunctioned and burned one of Triffle's employees. The malfunction was not the fault of the seller or the buyer, but of the manufacturer. Which one of the following actions arise from these facts?

The Sale of Goods Act applies to both goods and services.

The British Columbia Business Institute (BCBI), because of its vast purchasing power, arranged a special plan through which its students could purchase new computers at a greatly discounted price. BCBI took orders from a number of students, along with a deposit as an indication of good faith, and then bought that number of computers from A. Pwee Ltd., the manufacturer. When the students came to BCBI with the balance of the purchase price, a specific machine was selected and sold to them using a serial number, and it was then theirs to take away. By Friday afternoon of delivery week, all but three students had picked up their machines. Jackson had stopped by and completed the purchase arrangements, and a particular machine was identified by number as his. But because he was going out of town for the weekend, he arranged to pick it up on Monday. The two others, Pollock and Kline, had not yet showed up. Unfortunately, some time on the weekend, despite due care by BCBI, thieves smashed into the storeroom and stole the final three computers. Identify the true statement about liability for this loss (presuming the thieves cannot be caught).

Every Canadian jurisdiction has now enacted an international Sale of Goods Act.

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

Gregory went to Collegiate Sports Ltd. with his dad, who asked for some shoes for Gregory suitable for playing squash. Gregory was given a pair of running shoes suitable only for jogging. His dad paid with cash. That evening, wearing the new shoes while playing squash, Gregory broke his ankle. In the ensuing lawsuit, the statement of claim cited the provisions of the Sale of Goods Act. Which of the following is true if it were proven that the shoes were inappropriate and the cause of the injury?

Sam went to Joe's garden shop and agreed to purchase a particular bin of bark mulch. The seller, Joe, agreed and said that he would just weigh it, figure out the price, and deliver it tomorrow. In the meantime, who has title to the bark mulch?

The Competition Bureau is an independent law enforcement agency that administers and enforces the Competition Act.

Privity of contract does not apply to consumer transactions.

What types of transactions does the Sale of Goods Act apply to?

Explain how the abuses usually associated with door-to-door sales are controlled.

Explain how the Bankruptcy and Insolvency Act protects the position of an unpaid seller.

Explain how the money lending business is controlled in your province.

The Bankruptcy and Insolvency Act allows a supplier of goods to recover those goods even after they are delivered to the purchaser if

Quiet possession of the goods means that the goods must be of merchantable quality and free from any inherent defect.

"The Sale of Goods Act imposes terms into the contract that are even and fair, and that don't benefit one side over the other." Discuss the accuracy of this statement.

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

The mission of the Consumer Protection Act is to protect and promote competitive markets and enable informed consumer choice in Canada.

Define the mission of the Consumer Packaging and Labelling Act.