Exam 16: Sales and Consumer Protection

When goods are sold, who normally bears the risk?

Joe bought a TV "on approval," took it home, and installed it on his wall as part of an AV system in his renovated recreation room. He discovered, however, that the TV was too small, extracted it from the wall, and took it back, saying he was not happy about it. The seller asked about the minor scratches on the finish and Joe explained how it had been built into the wall, and the trouble he went to get it out again. Has title transferred? Explain.

Tina's Gourmet Catering Ltd. (hereinafter referred to as "Tina's") makes several types of fresh salads, which they package in sealed containers and sell to various retail outlets. Grandma Wright, shopping with her daughter Jane, bought one of Tina's salads at the delicatessen at Superdeal Grocers Ltd. (Superdeal). Jane and her mom drove to Jane's and Jane served the salad to her family for lunch. The salad was contaminated through Tina's carelessness and caused Jane's family to be very sick. Jane's husband missed work and her kids missed school for a week. Neither Jane nor her mother were sick because neither had eaten the salad. On these facts, which of the following actions would most likely be successful?

The Sale of Goods Act places certain obligations on the seller with respect to conveying good title. What are those requirements?

Jones walked into a new car lot, pointed to a specific car, and said, "I'll take that one." Sam, the operator of the car lot, explained that there was a certain amount of pre-delivery preparation that had to take place before the car could be delivered, and that it would be ready for the purchaser two days later. It was agreed that the purchase price would be paid at that time. Explain who bears the risk in the meantime.

Colson went to Logon Drugs and bought some light bulbs for the hallways of his new apartment building. A tenant asked for one and Colson gave him one but told him he was responsible for getting his own from now on. The bulb, manufactured by Belleville Brite, Ltd. and sold to Logon Drugs by Dandy Distributors Ltd., was improperly made. It exploded and set some curtains on fire. The tenant's apartment suffered $6000 damage and he had to move out. He couldn't live there while repairs were being undertaken and had no choice but to find another place, as it would take three weeks to get the apartment liveable again. On these facts, which of the following is False?

Which one of the following statements is False with respect to who bears the risk of loss in a sale-of-goods contract?

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

Distinguish among a C.I.F. contract, an F.O.B. contract, and a C.O.D. contract.