Question 1

What is the main purpose of the Sale of Goods Act?

Accepted Answer

To provide missing terms that

Question 2

Which of the following is a goal of the Bankruptcy and Insolvency Act?

Accepted Answer

A) provides alternative to criminal charges 
B) protects the interests of debtors 
C) allows persons with impossible burdens of debt to discharge all of their debts 
D) provides a process to preserve as much of the debtor's assets as possible for the benefit of creditors 
E) helps incorporated companies after discharge to carry on without the same burden of debt 
A) provides alternative to criminal charges 
B) protects the interests of debtors 
C) allows persons with impossible burdens of debt to discharge all of their debts 
D) provides a process to preserve as much of the debtor's assets as possible for the benefit of creditors 
E) helps incorporated companies after discharge to carry on without the same burden of debt

Question 3

Which of the following is not able to file a lien against the property under the Builders' Lien Act?

Accepted Answer

A) suppliers 
B) workers 
C) lenders 
D) subcontractors 
E) contractors 
A) suppliers 
B) workers 
C) lenders 
D) subcontractors 
E) contractors

Question 4

In which of the following will the title to the goods pass to the buyer at the time of contract?

Accepted Answer

A) ABC Co.buys all chemicals contained in a drum marked "A" but the price has to be ascertained by measuring the number of litres in the drum. 
B) Williams contracts for the desk he selected at Antiques Unlimited,and he arranges to have it delivered to his office tomorrow and to be paid for in one month. 
C) Mrs.Jones calls the Bay and asks it to send her the blanket advertised on page 3 of its flyer.The Bay agrees and takes her credit card number. 
D) Mary picks out a leather briefcase and leaves it with the seller so that initials can be engraved on it.She pays by cheque. 
E) While at the Bay,Preston decides to buy the style of sofa he sees on display.He pays by cash and the store arranges to have a sofa sent from its warehouse directly to Preston's home. 
A) ABC Co.buys all chemicals contained in a drum marked "A" but the price has to be ascertained by measuring the number of litres in the drum. 
B) Williams contracts for the desk he selected at Antiques Unlimited,and he arranges to have it delivered to his office tomorrow and to be paid for in one month. 
C) Mrs.Jones calls the Bay and asks it to send her the blanket advertised on page 3 of its flyer.The Bay agrees and takes her credit card number. 
D) Mary picks out a leather briefcase and leaves it with the seller so that initials can be engraved on it.She pays by cheque. 
E) While at the Bay,Preston decides to buy the style of sofa he sees on display.He pays by cash and the store arranges to have a sofa sent from its warehouse directly to Preston's home.

Question 5

Parties to a contract can override the Sale of Goods Act's implied conditions and warranties related to title,fitness,quality,and nature by including exemption clauses in the form of limited warranties.

Accepted Answer

A) True 
 B)False

Question 6

Edward goes to his neighbourhood hardware store and asks for a six-foot by two-foot piece of plywood.He also requests that it be "sturdy".Edward purchases the plywood and proceeds to use it as a makeshift bridge for his dog,a one-hundred-pound black lab,to cross over a small ditch in the back yard.The first time his lab attempts to cross the bridge,it breaks and the dog falls,fracturing a bone in his leg.Edward's suit against the hardware store for the veterinarian bills will:

Accepted Answer

A) succeed for breach of implied term of fitness because Edward specifically asked for the plywood to be "sturdy." 
B) fail because Edward did not expressly state the particular purpose for which he intended to use the plywood and therefore the hardware store did not breach any implied term of fitness. 
C) fail because there was no breach of the implied term as to description. 
D) succeed because the hardware store breached the implied term of merchantable quality by selling the plywood to Edward in these circumstances. 
E) succeed because of consumer protection legislation. 
A) succeed for breach of implied term of fitness because Edward specifically asked for the plywood to be "sturdy." 
B) fail because Edward did not expressly state the particular purpose for which he intended to use the plywood and therefore the hardware store did not breach any implied term of fitness. 
C) fail because there was no breach of the implied term as to description. 
D) succeed because the hardware store breached the implied term of merchantable quality by selling the plywood to Edward in these circumstances. 
E) succeed because of consumer protection legislation.

Question 7

A warranty under the Sale of Goods Act is a contract term the breach of which will allow the victim of the breach to refuse to go through with his or her side of the agreement.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following entitles a creditor to perfection of a security interest under the Personal Property Security Act?

Accepted Answer

A) the point in time when the creation of a security interest by entering into a security agreement with the debtor 
B) the point in time when value is given under the contract to the debtor 
C) the point in time when the creditor obtains a claim against the assets 
D) the point in time when the creditor takes physical possession of the property used as security such as share certificates or bonds 
E) The point in time when the creditor searches the title of the asset through the PPSA registration system 
A) the point in time when the creation of a security interest by entering into a security agreement with the debtor 
B) the point in time when value is given under the contract to the debtor 
C) the point in time when the creditor obtains a claim against the assets 
D) the point in time when the creditor takes physical possession of the property used as security such as share certificates or bonds 
E) The point in time when the creditor searches the title of the asset through the PPSA registration system

Question 10

The Canada Consumer Product Safety Act (2011)gives regulators the power to force the immediate recalls of dangerous products and requires manufacturers to report incidents of products causing injury and to keep detailed records so that sold products can be traced.The passage of this Act also involved major changes to the Hazardous Products Act.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements accurately states the law with respect to consumer transactions?

Accepted Answer

A) Where the court decides that a transaction was unconscionable,that transaction is unenforceable by the buyer. 
B) Where a supplier engages in a deceptive or unconscionable act,he is neither subject to fines nor jail. 
C) In most provinces,legislation makes false or misleading statements in advertising or made by a salesperson an unfair business practice,but this is not actionable as a breach. 
D) In all consumer transactions,there is a cooling-off period of seven days in which the consumer can call off the deal. 
E) In most provinces,legislation makes false or misleading statements in advertising or made by a salesperson a term of the contract and,therefore,actionable as a breach. 
A) Where the court decides that a transaction was unconscionable,that transaction is unenforceable by the buyer. 
B) Where a supplier engages in a deceptive or unconscionable act,he is neither subject to fines nor jail. 
C) In most provinces,legislation makes false or misleading statements in advertising or made by a salesperson an unfair business practice,but this is not actionable as a breach. 
D) In all consumer transactions,there is a cooling-off period of seven days in which the consumer can call off the deal. 
E) In most provinces,legislation makes false or misleading statements in advertising or made by a salesperson a term of the contract and,therefore,actionable as a breach.

Question 12

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

Accepted Answer

A) a contract for a boat 
B) a contract with a warehouse owner to store a Chevrolet car 
C) a contract for a house 
D) a contract for a haircut 
E) a contract to have a dress mended and cleaned 
A) a contract for a boat 
B) a contract with a warehouse owner to store a Chevrolet car 
C) a contract for a house 
D) a contract for a haircut 
E) a contract to have a dress mended and cleaned

Question 13

Which of the following contracts would be covered by the Sale of Goods Act?

Accepted Answer

A) a contract for the sale of a famous painting 
B) the trade of a car for a boat involving no money 
C) the purchase of a house 
D) a contract for medical services with a doctor 
E) the sale of corporate shares 
A) a contract for the sale of a famous painting 
B) the trade of a car for a boat involving no money 
C) the purchase of a house 
D) a contract for medical services with a doctor 
E) the sale of corporate shares

Question 14

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

Accepted Answer

A) "Waiter,there is a dead fly in my spaghetti." 
B) "Today is the closing date and I am willing to tender the full price in cash,namely $70 000,for the farm,and you are now telling me that you have no intention of closing." 
C) "I agreed to give you a dozen old campaign buttons for that original signature of the prime minister,but received the signature of the governor general." 
D) "I brought in five shirts to be laundered and you are returning only four to me!" 
E) "I asked for a trim! You've cut off 5 inches!!!" 
A) "Waiter,there is a dead fly in my spaghetti." 
B) "Today is the closing date and I am willing to tender the full price in cash,namely $70 000,for the farm,and you are now telling me that you have no intention of closing." 
C) "I agreed to give you a dozen old campaign buttons for that original signature of the prime minister,but received the signature of the governor general." 
D) "I brought in five shirts to be laundered and you are returning only four to me!" 
E) "I asked for a trim! You've cut off 5 inches!!!"

Question 15

When goods are sold,who normally bears the risk?

Accepted Answer

Risk follows title; that is,wh

Question 16

A businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

Accepted Answer

A) The court allowed the transfer,determining that the wife was not a co-conspirator. 
B) The court declined to exercise jurisdiction,because a bankrupt has no status to appear in court. 
C) The court reversed the transfer,determining that it was a bankruptcy offence under the Bankruptcy and Insolvency Act. 
D) The court reversed the transfer,because it was unnecessary; the wife would automatically receive the matrimonial home once the bankruptcy took effect. 
E) The court allowed the transfer,because transfers between spouses are exempt under the Bankruptcy and Insolvency Act. 
A) The court allowed the transfer,determining that the wife was not a co-conspirator. 
B) The court declined to exercise jurisdiction,because a bankrupt has no status to appear in court. 
C) The court reversed the transfer,determining that it was a bankruptcy offence under the Bankruptcy and Insolvency Act. 
D) The court reversed the transfer,because it was unnecessary; the wife would automatically receive the matrimonial home once the bankruptcy took effect. 
E) The court allowed the transfer,because transfers between spouses are exempt under the Bankruptcy and Insolvency Act.

Question 17

Often the title of the goods will be transferred to a creditor as security for a loan.Sometimes this involves the use of a bill of sale,but the nature of the transaction is for the loan to be repaid.In this case,the creditor retains possession of the item used as security.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

Accepted Answer

A) "The deal was this: Fred was to assign to Paul Fred's accounts receivable,and Paul would pay him $5000 cash,but Fred did not honour his promise." 
B) "We hired you as a bartender,not to join the guests and teach them Texas line dancing!" 
C) "I paid you to tune the car,but it obviously wasn't done!" 
D) "Pursuant to the contract,the buyer of the house tendered $50 000 on the closing date,but the seller had changed his mind." 
E) "There's a small,dead insect in my soup!" 
A) "The deal was this: Fred was to assign to Paul Fred's accounts receivable,and Paul would pay him $5000 cash,but Fred did not honour his promise." 
B) "We hired you as a bartender,not to join the guests and teach them Texas line dancing!" 
C) "I paid you to tune the car,but it obviously wasn't done!" 
D) "Pursuant to the contract,the buyer of the house tendered $50 000 on the closing date,but the seller had changed his mind." 
E) "There's a small,dead insect in my soup!"

Question 19

The following events occurred before the goods or parts of the goods were destroyed by fire.In which case would the buyer suffer the loss?

Accepted Answer

A) Justin contracted for a piano that had to be tuned before it was in a deliverable state.It was tuned,but Justin had not been notified that it was ready. 
B) Jaspers contracted for four standard-sized cupboards for the kitchen.The boards had been cut,but they had not been assembled. 
C) Manchesco chose which of the chairs he wanted and contracted for them,but he had agreed to pay and pick them up the next day. 
D) McGrady ordered a chainsaw advertised in the Sears catalogue. 
E) Heinz contracted for all the corn in silo A.The seller still had to weigh the corn to determine the price. 
A) Justin contracted for a piano that had to be tuned before it was in a deliverable state.It was tuned,but Justin had not been notified that it was ready. 
B) Jaspers contracted for four standard-sized cupboards for the kitchen.The boards had been cut,but they had not been assembled. 
C) Manchesco chose which of the chairs he wanted and contracted for them,but he had agreed to pay and pick them up the next day. 
D) McGrady ordered a chainsaw advertised in the Sears catalogue. 
E) Heinz contracted for all the corn in silo A.The seller still had to weigh the corn to determine the price.

Question 20

Distinguish between conditions and warranties in a sale of goods contract.

Accepted Answer

Conditions are major

What is the main purpose of the Sale of Goods Act?

Which of the following is a goal of the Bankruptcy and Insolvency Act?

Which of the following is not able to file a lien against the property under the Builders' Lien Act?

In which of the following will the title to the goods pass to the buyer at the time of contract?

Parties to a contract can override the Sale of Goods Act's implied conditions and warranties related to title,fitness,quality,and nature by including exemption clauses in the form of limited warranties.

A warranty under the Sale of Goods Act is a contract term the breach of which will allow the victim of the breach to refuse to go through with his or her side of the agreement.

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

Which of the following entitles a creditor to perfection of a security interest under the Personal Property Security Act?

Which of the following statements accurately states the law with respect to consumer transactions?

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

Which of the following contracts would be covered by the Sale of Goods Act?

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

When goods are sold,who normally bears the risk?

A businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

Often the title of the goods will be transferred to a creditor as security for a loan.Sometimes this involves the use of a bill of sale,but the nature of the transaction is for the loan to be repaid.In this case,the creditor retains possession of the item used as security.

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

The following events occurred before the goods or parts of the goods were destroyed by fire.In which case would the buyer suffer the loss?

Distinguish between conditions and warranties in a sale of goods contract.

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Agency and Employment

Methods of Carrying on Business

Property

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Exam 5: Legislation in the Marketplace

What is the main purpose of the Sale of Goods Act?

Which of the following is a goal of the Bankruptcy and Insolvency Act?

Which of the following is not able to file a lien against the property under the Builders' Lien Act?

In which of the following will the title to the goods pass to the buyer at the time of contract?

Parties to a contract can override the Sale of Goods Act's implied conditions and warranties related to title,fitness,quality,and nature by including exemption clauses in the form of limited warranties.

A warranty under the Sale of Goods Act is a contract term the breach of which will allow the victim of the breach to refuse to go through with his or her side of the agreement.

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

Which of the following entitles a creditor to perfection of a security interest under the Personal Property Security Act?

Which of the following statements accurately states the law with respect to consumer transactions?

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

Which of the following contracts would be covered by the Sale of Goods Act?

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

When goods are sold,who normally bears the risk?

A businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

Often the title of the goods will be transferred to a creditor as security for a loan.Sometimes this involves the use of a bill of sale,but the nature of the transaction is for the loan to be repaid.In this case,the creditor retains possession of the item used as security.

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

The following events occurred before the goods or parts of the goods were destroyed by fire.In which case would the buyer suffer the loss?

Distinguish between conditions and warranties in a sale of goods contract.

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