Question 1

An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.

Accepted Answer

A) True 
 B)False

Question 2

Distinguish between a promissory note and a bill of exchange.

Accepted Answer

A bill of exchange involves on

Question 3

What steps have been taken provincially to protect a purchaser with respect to the quality of the goods that are purchased?

Accepted Answer

This will vary with jurisdictions.For ex

Question 4

Slipstream bought a new lawnmower for mowing his own yard at home from Mulcher Mowers Ltd.,a lawn and garden tools dealer in Vancouver.Unfortunately,while there were no major defects with the machine,a number of small things kept going wrong: the blade kept going out of adjustment,the starter rope broke twice,a wheel fell off,the handle loosened and wobbled,and the machine stalled in heavy grass.During the summer,Slipstream had it repaired six times.These small annoyances continued and finally,in disgust,he returned the mower to Mulcher.However,Mulcher's manager (a university graduate)pointed out to Slipstream that their contract contained a very extensive exemption clause excluding "all conditions or warranties,express or implied,statutory or otherwise," and refused to accept the mower back or to return Slipstream's money.Slipstream commenced legal action.Which of the following statements best describes Slipstream's legal situation?

Accepted Answer

A)  The Sale of Goods Act prohibits the use of such exclusion clauses generally. 
B)  Such clauses are always effective just as long as the two parties have agreed to their inclusion in the contract. 
C)  Such clauses are only effective when there is a breach of the fundamental term of the contract, which is likely not the case here because the defects were all minor. 
D)  All such exclusion clauses are void. 
E)  In a sale of new goods by a dealer to a private consumer for his own use, legislation prohibits the seller from excluding these basic warranties with respect to fitness and quality. 
A)  The Sale of Goods Act prohibits the use of such exclusion clauses generally. 
B)  Such clauses are always effective just as long as the two parties have agreed to their inclusion in the contract. 
C)  Such clauses are only effective when there is a breach of the fundamental term of the contract, which is likely not the case here because the defects were all minor. 
D)  All such exclusion clauses are void. 
E)  In a sale of new goods by a dealer to a private consumer for his own use, legislation prohibits the seller from excluding these basic warranties with respect to fitness and quality.

Question 5

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

Accepted Answer

That the goods be free of any

Question 6

If Jones receives a promissory note from Smith,who passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

Joe has title to the bark mulch.Rule 3 o

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Tahmineh was very upset to find herself short of cash after her roommate had moved out without paying her share of the month's expenses.Tahmineh had no choice but to borrow money from QuickMoney Loans.Without getting legal advice,she signed a contract in which she agreed to pay back the money along with interest.The interest clause provided that interest was to be calculated at the rate of 2 percent per month.Tahmineh failed to pay back all of the funds,and QuickMoney Loans sued her.What argument might she successfully raise to limit the amount of her obligation?

Accepted Answer

A)  The Interest Act provides that in any contract where interest is payable, interest must be stated as an annual rate. 
B)  Because the actual interest rate was over 1 percent per month, the interest provision was contrary to the Criminal Code. 
C)  It is unlawful to charge interest to a person in a vulnerable state. 
D)  Because Tahmineh did not receive independent legal advice, the loan agreement is void. 
E)  Because Tahmineh was upset over her roommate moving out, she lacked capacity to agree to the terms of the contract. 
A)  The Interest Act provides that in any contract where interest is payable, interest must be stated as an annual rate. 
B)  Because the actual interest rate was over 1 percent per month, the interest provision was contrary to the Criminal Code. 
C)  It is unlawful to charge interest to a person in a vulnerable state. 
D)  Because Tahmineh did not receive independent legal advice, the loan agreement is void. 
E)  Because Tahmineh was upset over her roommate moving out, she lacked capacity to agree to the terms of the contract.

Question 13

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterwards,a bailiff,acting for an unpaid conditional seller,seized the car.The conditional seller had properly registered his claim in time.Alf wants to sue Mr.Wojchu.Which of the following correctly sets out his legal position?

Accepted Answer

A)  Alf wins. Mr. Wojchu has failed to deliver good title. 
B)  Alf wins. Goods are not of merchantable quality. 
C)  Wojchu loses. Risk follows title. 
D)  Alf loses. Caveat emptor applies. 
E)  Alf loses. It was his obligation to search the title and he failed to. 
A)  Alf wins. Mr. Wojchu has failed to deliver good title. 
B)  Alf wins. Goods are not of merchantable quality. 
C)  Wojchu loses. Risk follows title. 
D)  Alf loses. Caveat emptor applies. 
E)  Alf loses. It was his obligation to search the title and he failed to.

Question 14

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 brought 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 brought it back in the first week. Something is seriously wrong with it."

Question 15

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

Accepted Answer

A)  The Act does not provide that the goods must be fit for purpose. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. 
C)  When you buy a car, and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of "merchantable quality," and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days. 
A)  The Act does not provide that the goods must be fit for purpose. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. 
C)  When you buy a car, and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of "merchantable quality," and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days.

Question 16

In Dansway International Transport Ltd.v.Lesway and Sons Ltd.,the relevant contract did not state that time was important,nor did it specify a time for performance.What did the Court find?

Accepted Answer

A)  There was an implied term that performance had to be within a reasonable time, which would depend on the circumstances. 
B)  Because the parties did not include a provision as to time, the Court could not invent one for them. 
C)  There was an implied term that performance had to be within a reasonable time, which would always be equal to one calendar month. 
D)  Because the parties did not include a provision as to time, the agreement was void for a lack of the essential element of consensus. 
E)  Because the parties did not include a provision as to time, the agreement was voidable at the option of either party, pursuant to the Sale of Goods Act. 
A)  There was an implied term that performance had to be within a reasonable time, which would depend on the circumstances. 
B)  Because the parties did not include a provision as to time, the Court could not invent one for them. 
C)  There was an implied term that performance had to be within a reasonable time, which would always be equal to one calendar month. 
D)  Because the parties did not include a provision as to time, the agreement was void for a lack of the essential element of consensus. 
E)  Because the parties did not include a provision as to time, the agreement was voidable at the option of either party, pursuant to the Sale of Goods Act.

Question 17

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

Accepted Answer

All of these deal with title and risk.A

Question 18

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

Accepted Answer

A)  In a retail sale of new goods, the seller can always exclude liability for breach of all implied terms in the Sale of Goods Act by a carefully drawn exemption clause. 
B)  A seller who has been given a cheque that "bounces" (dishonoured for insufficient funds) in payment for goods that he still possesses has a choice of rights against the goods themselves and an action for breach of contract against the buyer. 
C)  The Sale of Goods Act provides terms that will be taken to be part of a contract for goods even though the parties failed to mention anything about such matters. 
D)  In commercial transactions, a buyer of goods has the protection of the "fit for purpose" provision, but legislation enables the seller to exempt himself from liability. 
E)  The Sale of Goods Act permits commercial parties to exclude the Act if they mutually want to. 
A)  In a retail sale of new goods, the seller can always exclude liability for breach of all implied terms in the Sale of Goods Act by a carefully drawn exemption clause. 
B)  A seller who has been given a cheque that "bounces" (dishonoured for insufficient funds) in payment for goods that he still possesses has a choice of rights against the goods themselves and an action for breach of contract against the buyer. 
C)  The Sale of Goods Act provides terms that will be taken to be part of a contract for goods even though the parties failed to mention anything about such matters. 
D)  In commercial transactions, a buyer of goods has the protection of the "fit for purpose" provision, but legislation enables the seller to exempt himself from liability. 
E)  The Sale of Goods Act permits commercial parties to exclude the Act if they mutually want to.

Question 19

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

Accepted Answer

A)  The Act provides that the goods must be fit for purpose, but to have that protection, the buyer must be dealing with a seller who deals in goods of that kind. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a condition of the contract. 
C)  When you buy a car, and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of "merchantable quality," and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must match the sample. 
A)  The Act provides that the goods must be fit for purpose, but to have that protection, the buyer must be dealing with a seller who deals in goods of that kind. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a condition of the contract. 
C)  When you buy a car, and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of "merchantable quality," and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must match the sample.

Question 20

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

Accepted Answer

direct sal

An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.

Distinguish between a promissory note and a bill of exchange.

What steps have been taken provincially to protect a purchaser with respect to the quality of the goods that are purchased?

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

If Jones receives a promissory note from Smith,who passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

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?

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

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

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

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

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterwards,a bailiff,acting for an unpaid conditional seller,seized the car.The conditional seller had properly registered his claim in time.Alf wants to sue Mr.Wojchu.Which of the following correctly sets out his legal position?

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

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

In Dansway International Transport Ltd.v.Lesway and Sons Ltd.,the relevant contract did not state that time was important,nor did it specify a time for performance.What did the Court find?

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

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

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

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Priority of Creditors

Filters

Exam 15: Sales and Consumer Protection

An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.

Distinguish between a promissory note and a bill of exchange.

What steps have been taken provincially to protect a purchaser with respect to the quality of the goods that are purchased?

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

If Jones receives a promissory note from Smith,who passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

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?

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

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

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

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

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterwards,a bailiff,acting for an unpaid conditional seller,seized the car.The conditional seller had properly registered his claim in time.Alf wants to sue Mr.Wojchu.Which of the following correctly sets out his legal position?

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

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

In Dansway International Transport Ltd.v.Lesway and Sons Ltd.,the relevant contract did not state that time was important,nor did it specify a time for performance.What did the Court find?

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

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

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

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Priority of Creditors

Filters