Question 1

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

Accepted Answer

A) True 
 B)False

Question 2

Mr. Olde died. Mrs. Olde was treated by a psychiatrist who advised her that part of her difficulty was her trying to make financial decisions that had previously been made by her husband. Upon his advice, she contracted with him to examine her financial situation and to give her a letter advising her, in detail, what steps she should take with regard to twenty or so pressing business decisions. His fee would be $2,000. As agreed, he attended her home one evening and examined all the financial records. She issued a cheque payable to him for $2,000; the cheque was drawn on the Bank of Montreal, Austin Street branch. As promised, his letter of advice was delivered on the following day--a one-paragraph letter in which all he advised was that she transfer the two income-producing properties into his name so that he could "take care of things for you." Mrs. Olde attended her bank immediately to stop payment on the cheque. Before she did, however, the psychiatrist had endorsed it over to his bank, the Royal Bank at Cambie and 16th Avenue. On these facts, which one of the following is true?

Accepted Answer

A)  If Mrs. Olde can prove undue influence was used by the psychiatrist, she will not have to pay the holder of the cheque. 
B)  Because the parties deal with different banks, Mrs. Olde would not have to pay the holder of the cheque because she can successfully argue breach of contract. 
C)  The psychiatrist is the "acceptor" of the cheque. 
D)  Mrs. Olde will have to pay the holder of the cheque because it is a holder in due course. 
E)  Mrs. Olde is the "drawee" of the cheque. 
A)  If Mrs. Olde can prove undue influence was used by the psychiatrist, she will not have to pay the holder of the cheque. 
B)  Because the parties deal with different banks, Mrs. Olde would not have to pay the holder of the cheque because she can successfully argue breach of contract. 
C)  The psychiatrist is the "acceptor" of the cheque. 
D)  Mrs. Olde will have to pay the holder of the cheque because it is a holder in due course. 
E)  Mrs. Olde is the "drawee" of the cheque.

Question 3

The British Columbia Business Institute (BCBI), because of its vast purchasing power, arranged a special plan through which its students could purchase new computers at a greatly discounted price. BCBI took orders from a number of students, along with a deposit as an indication of good faith, and then bought that number of computers from A. Pwee Ltd., the manufacturer. When the students came to BCBI with the balance of the purchase price, a specific machine was selected and sold to them by a serial number, and it was then theirs to take away. By Friday afternoon of delivery week, all but three students had picked up their machines. Jackson had stopped by and completed the purchase arrangements, and a particular machine was identified by number as his. But because he was going out of town for the weekend, he arranged to pick it up on Monday. The two others, Pollock and Kline, had not yet showed up. Unfortunately, some time on the weekend, despite due care by BCBI, thieves smashed into the storeroom and stole the final three computers. Identify the true statement about liability for this loss (presuming the thieves cannot be caught).

Accepted Answer

A)  Jackson will be liable for the loss but Pollock and Kline will not. 
B)  BCBI will be liable to Jackson but not to Pollock and Kline. 
C)  No one will be liable for the loss because this was a crime and not the fault of any of them. 
D)  BCBI will be liable for the entire loss because none of the three students had taken actual delivery. 
E)  The three students will be liable entirely for the losses. 
A)  Jackson will be liable for the loss but Pollock and Kline will not. 
B)  BCBI will be liable to Jackson but not to Pollock and Kline. 
C)  No one will be liable for the loss because this was a crime and not the fault of any of them. 
D)  BCBI will be liable for the entire loss because none of the three students had taken actual delivery. 
E)  The three students will be liable entirely for the losses.

Question 4

To which one of the following would the Sale of Goods Act not apply?

Accepted Answer

A)  A contract for the sale of a ranch 
B)  A contract for the purchase of a car 
C)  A contract for future goods when title will pass in the future. 
D)  A contract for the sale of tangible personal property 
E)  A meal in a restaurant 
A)  A contract for the sale of a ranch 
B)  A contract for the purchase of a car 
C)  A contract for future goods when title will pass in the future. 
D)  A contract for the sale of tangible personal property 
E)  A meal in a restaurant

Question 5

Give examples of several different types of industries that are specifically controlled by consumer protection legislation.

Accepted Answer

This will vary from province to province

Question 6

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

Accepted Answer

Direct sal

Question 7

Explain how the abuses usually associated with door-to-door sales are controlled.

Accepted Answer

This will vary with the jurisd

Question 8

The protection of consumers is solely a provincial responsibility.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

Accepted Answer

A)  Because caveat emptor applies to the quality of goods, the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking. 
B)  The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods. 
C)  The Act provides a number of implied contractual terms to supplement those expressed in the contract, and these implied terms override the principle of caveat emptor. 
D)  The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods. 
E)  When there is a conflict between the principle of caveat emptor and the provisions of the Act, the principle prevails over the Act. 
A)  Because caveat emptor applies to the quality of goods, the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking. 
B)  The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods. 
C)  The Act provides a number of implied contractual terms to supplement those expressed in the contract, and these implied terms override the principle of caveat emptor. 
D)  The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods. 
E)  When there is a conflict between the principle of caveat emptor and the provisions of the Act, the principle prevails over the Act.

Question 10

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)  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. 
B)  Maureen contracts for Ms. Roberts' next year's pumpkin crop. 
C)  Azar goes into a store specializing in old woodworking tools. He chooses a $1000 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. 
D)  George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday. 
E)  Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container. 
A)  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. 
B)  Maureen contracts for Ms. Roberts' next year's pumpkin crop. 
C)  Azar goes into a store specializing in old woodworking tools. He chooses a $1000 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. 
D)  George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday. 
E)  Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container.

Question 11

Give examples of three federal acts which have consumer protection aspects to them.

Accepted Answer

Food and Drugs Act, Hazardous

Question 12

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

Accepted Answer

A)  A contract with an artist to have a portrait painted 
B)  A contract for the sale and purchase of a farm 
C)  A contract in which the seller sells a computer, and ownership will transfer to the buyer at a specified future time 
D)  A contract in which one party gives an antique pin in exchange for the other party giving an antique cigar box 
E)  A contract for the assignment of a company's "accounts receivable" 
A)  A contract with an artist to have a portrait painted 
B)  A contract for the sale and purchase of a farm 
C)  A contract in which the seller sells a computer, and ownership will transfer to the buyer at a specified future time 
D)  A contract in which one party gives an antique pin in exchange for the other party giving an antique cigar box 
E)  A contract for the assignment of a company's "accounts receivable"

Question 13

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

Accepted Answer

A vertical merger is a merger of a suppl

Question 14

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

Accepted Answer

A)  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 one sent from its warehouse directly to Preston's home. 
B)  Mary picks out a leather briefcase and leaves it with the seller so that initials can be engraved on it. She pays by cheque. 
C)  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. 
D)  Mrs. Jones calls the Bay and asks them to send out the blanket advertised on p. 3 of its flyer. The Bay agrees and takes her credit card number. 
E)  ABC Co. buys all the chemicals contained in a drum marked "A" but the price has to be ascertained by measuring the number of litres in the drum. 
A)  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 one sent from its warehouse directly to Preston's home. 
B)  Mary picks out a leather briefcase and leaves it with the seller so that initials can be engraved on it. She pays by cheque. 
C)  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. 
D)  Mrs. Jones calls the Bay and asks them to send out the blanket advertised on p. 3 of its flyer. The Bay agrees and takes her credit card number. 
E)  ABC Co. buys all the chemicals contained in a drum marked "A" but the price has to be ascertained by measuring the number of litres in the drum.

Question 15

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

Accepted Answer

A)  The Sale of Goods Act provides terms that are not to be part of a contract for goods even if the parties failed to mention anything about such matters. 
B)  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. 
C)  The Sale of Goods Act does not allow the use of exemption, exculpatory or limitation clauses. 
D)  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. 
E)  In private personal transactions, a buyer of goods has the protection of the "fit for purpose" provision. 
A)  The Sale of Goods Act provides terms that are not to be part of a contract for goods even if the parties failed to mention anything about such matters. 
B)  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. 
C)  The Sale of Goods Act does not allow the use of exemption, exculpatory or limitation clauses. 
D)  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. 
E)  In private personal transactions, a buyer of goods has the protection of the "fit for purpose" provision.

Question 16

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 17

Risk refers to potential loss due to the destruction or damage of the goods.

Accepted Answer

A) True 
 B)False

Question 18

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 does not apply to either because both involve fundamental breaches of contract. 
C)  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. 
D)  The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E)  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. 
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 does not apply to either because both involve fundamental breaches of contract. 
C)  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. 
D)  The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E)  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.

Question 19

In what way does the Interest Act affect contracts under which interest is payable?

Accepted Answer

The Interest Act provides that

Question 20

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

Accepted Answer

A)  A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud. 
B)  A holder in due course is the same as the "drawee" or "acceptor." 
C)  A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque. 
D)  A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment. 
E)  A holder in due course cannot be an immediate party. 
A)  A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud. 
B)  A holder in due course is the same as the "drawee" or "acceptor." 
C)  A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque. 
D)  A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment. 
E)  A holder in due course cannot be an immediate party.

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

To which one of the following would the Sale of Goods Act not apply?

Give examples of several different types of industries that are specifically controlled by consumer protection legislation.

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

Explain how the abuses usually associated with door-to-door sales are controlled.

The protection of consumers is solely a provincial responsibility.

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

Give examples of three federal acts which have consumer protection aspects to them.

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

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

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

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

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

Risk refers to potential loss due to the destruction or damage of the goods.

In what way does the Interest Act affect contracts under which interest is payable?

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

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Exam 15: Sales and Consumer Protection

The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.

To which one of the following would the Sale of Goods Act not apply?

Give examples of several different types of industries that are specifically controlled by consumer protection legislation.

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

Explain how the abuses usually associated with door-to-door sales are controlled.

The protection of consumers is solely a provincial responsibility.

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

Give examples of three federal acts which have consumer protection aspects to them.

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

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

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

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

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

Risk refers to potential loss due to the destruction or damage of the goods.

In what way does the Interest Act affect contracts under which interest is payable?

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

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