Exam 15: Sales and Consumer Protection

What is the effect of an unpaid seller's lien?

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 $5,000. 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?

Explain what common law recourse there is against manufacturers when they manufacture a faulty or dangerous product.

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

A type of sales practice in which the purchaser supplies a seller with a list of friends or acquaintances and receives a benefit when sales are made to those people is known as

Joe left his car at Harry's tire store, asking Harry to put a particular model of tire from his stock onto the vehicle while Joe went into his office in town. During the day, the tires were installed on the car, and Joe returned that evening to pick up the car. At what point did title on those tires transfer?

Prebushewski v. Dodge City Auto (1984) Ltd. involved an action under the Consumer Protection Act. The issue that went to the Supreme Court of Canada was the award of $25,000 in exemplary damages. What did the Supreme Court of Canada hold?

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

Vanderhoort contacted Prinz to buy a new furnace that burned both wood and oil. Prinz, who bought the furnace directly from the manufacturer, also installed it. The furnace was defective; it malfunctioned and caused a fire that destroyed the house of the buyer and the belongings of a visitor. Which of the following accurately sets out the legal position of the parties?

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

A holder in due course is in the same position as the person from whom a negotiable instrument was received.

When goods are en route to the buyer, upon the buyer's default, the seller has the right to intercept them and retake possession from the transporter as long as the goods have not yet reached the buyer. What is this right called?

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

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

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

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.

Which of the following is not controlled by consumer protection legislation?

The Bankruptcy and Insolvency Act allows a supplier of goods to recover those goods even after they are delivered to the purchaser if

"The Sale of Goods Act is to impose terms into the contract that are even and fair, that don't benefit one side over the other." Discuss the accuracy of that statement.

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