Exam 15: Sales and Consumer Protection

Bob and Barb went into Logan Drugs,a self-service drug store.She bought some packaged cookies and he bought some Tilox,a cleaning solvent for tile that he hoped would remove greasy dirt from a painted kitchen chair.Because Bob wanted to work on the chair,Barb set their son,Keith,at the kitchen table with some cookies so he could watch without being in the way.After he had two cookies,Barb noticed that there were worms in the cookies.She took Keith and the cookies (made in Vancouver)to the doctor.While they were away,Bob learned too late that the Tilox did take off the grease but also the paint.The directions advised against using the product on wood or painted surfaces.On these facts,which of the following is true?

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.Mrs.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; her husband,John,missed work and the kids missed school for a week.Neither Jane nor her mother were sick because neither had sat down with the others for lunch.Given these facts,which of the following actions would most likely be successful?

Rick has just been told that he will have to undergo a second operation because the results of the first operation are not as expected.In the first operation,a small device was inserted near his damaged knee to stimulate bone growth with electrical impulses.The device was not working.The operation was performed by Dr.Jones,who is employed by St.Everybody's hospital.There is evidence that the device itself is faulty.The hospital had purchased the device from Medisci Ltd.,which had purchased it directly from the manufacturer,Electrobo Ltd.The operation is not covered by the medical plan,and it will cost Rick $5000.Rick is very upset and wants to sue for damages.Which of the following is correct with respect to who Rick could sue and why?

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?

"The Sale of Goods Act is another example of consumer protection legislation." Discuss the accuracy of this statement.

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

Every Canadian jurisdiction has now enacted an international sale of goods act.

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

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

John bought a car for $5000.Shortly afterwards,a bailiff acting for an unpaid chattel mortgagee who had properly registered his claim in time seized the car.In which of the following circumstances will John be least likely to recover what he is owed?

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.

Distinguish between a vertical merger,horizontal merger,and a conglomerate merger.

Explain what obligation the Sale of Goods Act puts on the seller with respect to fitness and quality.

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

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

To which one of the following contracts would the Sale of Goods Act apply?

Which of the following is false with regard to a "holder in due course"?

The protection of consumers is solely a provincial responsibility.

Under the Sale of Goods Act,the seller has a lien against the goods and can recover those goods from the purchaser in the event of default.