Question 1

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.

Accepted Answer

A) True 
 B)False  True

Question 2

Explain the purpose of the bankruptcy process.

Accepted Answer

to ensure that creditors realize as much as possible on the debt and,second,to ensure that the debtor is rehabilitated,with the potential to be a productive member of society without the burden of insurmountable debt

Question 3

What is a bankruptcy offence? Give an example.

Accepted Answer

A bankruptcy offence is some act on the part of the debtor whereby he or she tries to cheat the creditors.This can be by lying,hiding assets,transferring assets to other people,refusing to disclose assets,paying one creditor in preference to another,fleeing the jurisdiction to avoid debts,etc.

Question 4

Explain what is meant by merchantable quality.

Accepted Answer

that the goods be free from an

Question 5

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterward,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) Wojchu loses.Risk follows title. 
C) Alf wins.Goods are not of merchantable quality. 
D) Alf loses.Caveat emptor applies. 
E) Alf loses.It was his obligation to search the title and he failed to do so. 
A) Alf wins.Mr.Wojchu has failed to deliver good title. 
B) Wojchu loses.Risk follows title. 
C) Alf wins.Goods are not of merchantable quality. 
D) Alf loses.Caveat emptor applies. 
E) Alf loses.It was his obligation to search the title and he failed to do so.

Question 6

Each province has passed an international sale of goods act covering international sales transactions,based on the World Trade Organization trade agreement.

Accepted Answer

A) True 
 B)False

Question 7

In commercial transactions,courts view exemption clauses as having been negotiated terms of the contract with consideration calculated on the basis of the liability associated with the clause and,therefore,are reluctant to overturn these clauses when they are clear and contain no ambiguity.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) If the parties do not agree otherwise,the risk of loss stays with the seller until delivery. 
B) A seller who has been given a cheque that "bounces" (dishonoured for insufficient funds),in payment for goods that he still possesses,has rights against the goods themselves as well as an action for breach of contract against the buyer. 
C) The Sale of Goods Act also applies to the purchase of real estate and of bonds. 
D) Legislation allows a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions. 
E) If the parties do not agree otherwise,the time of payment is 30 days after the time of delivery. 
A) If the parties do not agree otherwise,the risk of loss stays with the seller until delivery. 
B) A seller who has been given a cheque that "bounces" (dishonoured for insufficient funds),in payment for goods that he still possesses,has rights against the goods themselves as well as an action for breach of contract against the buyer. 
C) The Sale of Goods Act also applies to the purchase of real estate and of bonds. 
D) Legislation allows a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions. 
E) If the parties do not agree otherwise,the time of payment is 30 days after the time of delivery.

Question 9

If the contract doesn't say who bears the loss if an item is lost or stolen,the Sale of Goods Act says risk goes with title.If the contract doesn't say when the title will pass,the Sale of Goods Act implies when it will pass.In which of the following will the statute imply that title will pass to the buyer at the time of the contract?

Accepted Answer

A) George calls a store and asks it to deliver the table advertised in its catalogue.The store agrees,takes his credit card number,and promises to deliver the table on Friday. 
B) Azar goes into a store specializing in old woodworking tools.He chooses a $10 tooling machine.The contract provides that it would be delivered to his workshop the next morning and he would pay for it in one month. 
C) Maureen contracts for Ms.Roberts' next year's pumpkin crop. 
D) Agro Ltd.buys all chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container. 
E) While at Sears,Preston decides to buy the style of sofa he sees on display.He pays cash and the store arranges to have one like it,covered in the material he selects,delivered directly to him from the factory. 
A) George calls a store and asks it to deliver the table advertised in its catalogue.The store agrees,takes his credit card number,and promises to deliver the table on Friday. 
B) Azar goes into a store specializing in old woodworking tools.He chooses a $10 tooling machine.The contract provides that it would be delivered to his workshop the next morning and he would pay for it in one month. 
C) Maureen contracts for Ms.Roberts' next year's pumpkin crop. 
D) Agro Ltd.buys all chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container. 
E) While at Sears,Preston decides to buy the style of sofa he sees on display.He pays cash and the store arranges to have one like it,covered in the material he selects,delivered directly to him from the factory.

Question 10

Multilevel marketing organizations,where funds distributed are obtained from the sale of products,are otherwise known as pyramid schemes.

Accepted Answer

A) True 
 B)False

Question 11

Student loans are discharged through the bankruptcy process.

Accepted Answer

A) True 
 B)False

Question 12

Who is responsible for repossessing goods that have been used to secure a loan that has been defaulted?

Accepted Answer

the creditor,himself

Question 13

Which one of the following statements about the Personal Property Security Act is true?

Accepted Answer

A) This legislation applies only to all present transactions where personal property is given as security interest to enforce an obligation. 
B) If someone suspects that an item of personal property has been given as security by a particular person,he or she can sue on the breach of a condition. 
C) In a situation where a debtor fraudulently attempts to transfer property that he or she has given as security,the Act is designed to protect both the debtor and the secured creditor. 
D) If a secured creditor fails to register his or her security interest in the Personal Property Registry,he or she loses his or her rights against the debtor. 
E) Unless a creditor in a secured transaction covered by this Act takes steps to "attach and perfect" his security interest,he or she could lose that interest to someone outside the contract. 
A) This legislation applies only to all present transactions where personal property is given as security interest to enforce an obligation. 
B) If someone suspects that an item of personal property has been given as security by a particular person,he or she can sue on the breach of a condition. 
C) In a situation where a debtor fraudulently attempts to transfer property that he or she has given as security,the Act is designed to protect both the debtor and the secured creditor. 
D) If a secured creditor fails to register his or her security interest in the Personal Property Registry,he or she loses his or her rights against the debtor. 
E) Unless a creditor in a secured transaction covered by this Act takes steps to "attach and perfect" his security interest,he or she could lose that interest to someone outside the contract.

Question 14

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

Accepted Answer

A) All kinds of security arrangements involving personal property as collateral now come under one statute. 
B) Only tangible personal property can be used as security. 
C) An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved. 
D) Various kinds of secured transactions,such as conditional sales,chattel mortgages,etc.,are regulated by their own distinct statutes. 
E) This kind of transaction,which formerly was legal,is now prohibited by law in all provinces. 
A) All kinds of security arrangements involving personal property as collateral now come under one statute. 
B) Only tangible personal property can be used as security. 
C) An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved. 
D) Various kinds of secured transactions,such as conditional sales,chattel mortgages,etc.,are regulated by their own distinct statutes. 
E) This kind of transaction,which formerly was legal,is now prohibited by law in all provinces.

Question 15

With regard to guarantees,which of the following is true?

Accepted Answer

A) A guarantee and an indemnity are very similar in that the debtor and the guarantor stand side-by-side,both obligated under the contract. 
B) A verbal guarantee is as enforceable as a written one. 
C) If the creditor and the debtor change the terms of the agreement without permission of the guarantor,the guarantor will not be bound by the new terms,but will still be bound by the original obligations. 
D) A guarantor has less defence against the creditor that the debtor could use. 
E) A guarantee involves the guarantor agreeing to be responsible for the debt if the debtor defaults. 
A) A guarantee and an indemnity are very similar in that the debtor and the guarantor stand side-by-side,both obligated under the contract. 
B) A verbal guarantee is as enforceable as a written one. 
C) If the creditor and the debtor change the terms of the agreement without permission of the guarantor,the guarantor will not be bound by the new terms,but will still be bound by the original obligations. 
D) A guarantor has less defence against the creditor that the debtor could use. 
E) A guarantee involves the guarantor agreeing to be responsible for the debt if the debtor defaults.

Question 16

Elizabeth gave a guarantee to the bank in support of a loan to Tomasz.Over the next few years,the bank and Tomasz made a number of alterations to the loan agreement.The effect of these changes was to significantly increase the amount owing to the bank.Elizabeth had no notice or knowledge of these changes,nor did she consent to any such changes.What is the likely result?

Accepted Answer

A) A guarantee is executed under seal,therefore it will be presumed valid regardless of defect. 
B) Elizabeth is bound by the changes to the loan,because guarantees are,by their nature,continuing. 
C) Guarantees are a mere formality; only Tomasz has obligations to the bank. 
D) Elizabeth will not be bound by the new terms and will also be released from the original obligations. 
E) The failure to notify Elizabeth would release both Elizabeth and Tomasz from their obligations. 
A) A guarantee is executed under seal,therefore it will be presumed valid regardless of defect. 
B) Elizabeth is bound by the changes to the loan,because guarantees are,by their nature,continuing. 
C) Guarantees are a mere formality; only Tomasz has obligations to the bank. 
D) Elizabeth will not be bound by the new terms and will also be released from the original obligations. 
E) The failure to notify Elizabeth would release both Elizabeth and Tomasz from their obligations.

Question 17

O'Neil bought a new car from a Chevrolet dealer for family use.The contract he signed contained the following clause: "The parties hereto expressly agree that the dealer is not liable for any breach of condition or warranty,express or implied." He also bought a used car radio from the dealer for his old car,which he was keeping.The contract for the radio was not in writing.The car did not run properly; O'Neil had it back in the shop seven times in three weeks.It was finally determined that the problem was due to a faulty transmission.Unfortunately,the car radio didn't work either.On these facts,which of the following is true?

Accepted Answer

A) The contract for the radio is not covered by the Sale of Goods Act because the radio was not new. 
B) The exemption clause in the contract for the car would succeed in defeating an action by O'Neil against the dealer for breach of contract. 
C) The exemption clause does not apply to either because both involve fundamental breaches of contract. 
D) The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E) O'Neil has an action for breach of contract against the dealer,because the exemption clause does not defeat the dealer's obligation to deliver a properly performing car (fit for use)in a consumer transaction. 
A) The contract for the radio is not covered by the Sale of Goods Act because the radio was not new. 
B) The exemption clause in the contract for the car would succeed in defeating an action by O'Neil against the dealer for breach of contract. 
C) The exemption clause does not apply to either because both involve fundamental breaches of contract. 
D) The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E) O'Neil has an action for breach of contract against the dealer,because the exemption clause does not defeat the dealer's obligation to deliver a properly performing car (fit for use)in a consumer transaction.

Question 18

In the case of Bernard Madoff,a scheme was created as an investment program in which the early investors were paid out returns on their investments,not from earnings but from funds supplied by later investors,although they thought the earnings were the results of successful investments.Which of the following describes this scheme?

Accepted Answer

A) Ponzi scheme 
B) pyramid scheme 
C) price-fixing scheme 
D) conspiracy scheme 
E) bait-and-switch scheme 
A) Ponzi scheme 
B) pyramid scheme 
C) price-fixing scheme 
D) conspiracy scheme 
E) bait-and-switch scheme

Question 19

What purpose is served by requiring the creditor to register his or her secured transaction?

Accepted Answer

It notifies other people that the goods

Question 20

Regarding the Federal Competition Act,which of the following is true with respect to types of prohibited conduct?

Accepted Answer

A) An offence is committed where a merchant sets the price of a product below that of the competition. 
B) Telemarketers commit an offence when there is failure to disclose the identity of the seller,the nature of the product,and the price. 
C) Product performance claims based on sound scientific testing are an offence. 
D) Any advertising or representation to promote a product is prohibited. 
E) Prohibited conduct includes competitors bidding on a particular project. 
A) An offence is committed where a merchant sets the price of a product below that of the competition. 
B) Telemarketers commit an offence when there is failure to disclose the identity of the seller,the nature of the product,and the price. 
C) Product performance claims based on sound scientific testing are an offence. 
D) Any advertising or representation to promote a product is prohibited. 
E) Prohibited conduct includes competitors bidding on a particular project.

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.

Explain the purpose of the bankruptcy process.

What is a bankruptcy offence? Give an example.

Explain what is meant by merchantable quality.

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterward,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?

Each province has passed an international sale of goods act covering international sales transactions,based on the World Trade Organization trade agreement.

In commercial transactions,courts view exemption clauses as having been negotiated terms of the contract with consideration calculated on the basis of the liability associated with the clause and,therefore,are reluctant to overturn these clauses when they are clear and contain no ambiguity.

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

Multilevel marketing organizations,where funds distributed are obtained from the sale of products,are otherwise known as pyramid schemes.

Student loans are discharged through the bankruptcy process.

Who is responsible for repossessing goods that have been used to secure a loan that has been defaulted?

Which one of the following statements about the Personal Property Security Act is true?

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

With regard to guarantees,which of the following is true?

What purpose is served by requiring the creditor to register his or her secured transaction?

Regarding the Federal Competition Act,which of the following is true with respect to types of prohibited conduct?

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters

Exam 5: Legislation in the Marketplace

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.

Explain the purpose of the bankruptcy process.

What is a bankruptcy offence? Give an example.

Explain what is meant by merchantable quality.

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterward,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?

Each province has passed an international sale of goods act covering international sales transactions,based on the World Trade Organization trade agreement.

In commercial transactions,courts view exemption clauses as having been negotiated terms of the contract with consideration calculated on the basis of the liability associated with the clause and,therefore,are reluctant to overturn these clauses when they are clear and contain no ambiguity.

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

Multilevel marketing organizations,where funds distributed are obtained from the sale of products,are otherwise known as pyramid schemes.

Student loans are discharged through the bankruptcy process.

Who is responsible for repossessing goods that have been used to secure a loan that has been defaulted?

Which one of the following statements about the Personal Property Security Act is true?

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

With regard to guarantees,which of the following is true?

What purpose is served by requiring the creditor to register his or her secured transaction?

Regarding the Federal Competition Act,which of the following is true with respect to types of prohibited conduct?

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters