Exam 15: Sales and Consumer Protection

Explain what is meant by the term "consumer transactions".

Bob, owner of a pizza business, went with his wife to pick out a new family car. Since they already knew the make and model they wanted, it did not take long before the contract was signed by the wife for a new 2012 Oldsmobile. While the paperwork was being done, Bob had been talking with another salesman about the used cars on the lot, telling him that he needed a mechanically sound car but not a new car for his business. The salesman showed him one that he said was in good shape and would give several years of service. Bob made a very low offer that the salesman accepted, much to Bob's surprise. The contract Bob signed, like his wife's, contained a clause exempting the seller, B & S Motors, from liability for breach of any warranties, including any implied warranties under the Sale of Goods Act. A few weeks after the sale, the wife and daughter were injured in an accident caused by the faulty steering mechanism of the new car. Furthermore, the used car was not in good shape and lasted weeks, not years. On these facts, which of the following is true?

Explain under what circumstances the sale of goods must be evidenced by writing.

Slipstream bought a new lawnmower for mowing his own yard at home from Mulcher Mowers Ltd., a lawn and garden tools dealer in Vancouver. Unfortunately, while there were no major defects with the machine, a number of small things kept going wrong: the blade kept going out of adjustment, the starter rope broke twice, a wheel fell off, the handle loosened and wobbled, and the machine stalled in heavy grass. During the summer, Slipstream had it repaired six times. These small annoyances continued and finally, in disgust, he returned the mower to Mulcher. However, Mulcher's manager (a university graduate) pointed out to Slipstream that their contract contained a very extensive exemption clause excluding "all conditions or warranties, express or implied, statutory or otherwise," and refused to accept the mower back or to return Slipstream's money. Slipstream commenced legal action. Which of the following statements best describes Slipstream's legal situation?

Gift Card Regulation stipulates that gift cards are allowed to have expiry dates. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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

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

Where the parties fail to state a price in a sale of goods transaction, what effect will the Sale of Goods Act have on that agreement?

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. Grandma 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; father 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. On these facts, which of the following actions would most likely be successful?

The Sale of Goods Act places certain obligations on the seller with respect to conveying good title. What are those requirements?

The purpose of the federal Competition Act is to prevent competition among retailers.

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

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

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

The common law doctrine of unconscionability in contract law can also be applied to consumer situations.

Sarah, who had just celebrated her 21st birthday, was distraught over the fact that her tuition had recently gone up. She did not qualify for any further student funding, so she had no alternative but to borrow money from FastCash Loans. Without getting legal advice, she signed a contract in which she agreed to pay back the money along with interest. Because Sarah was a student, and therefore a high-risk client, the interest clause was to be calculated at the rate of 80 percent per year. Sarah failed to pay back all of the funds and FastCash Loans sued her. What argument might she successfully raise to limit the amount of her obligation?

When goods are used as a security, does the Sale of Goods Act apply to such a transaction?

Four students assigned to examine the operations of Mr. Triffle's restaurant supply company found that the business worked in an inefficient manner. On the students' recommendation, Triffle went to Computerheaven Ltd. and explained to the salesperson the needs of the company. Computerheaven sold the company an Olivetti computer system for $18,000. The system was in operation less than one hour when it malfunctioned and injured one of Triffle's employees. The malfunction was not the fault of the seller or the buyer, but of the manufacturer. Which one of the following actions arise from these facts?

Which of the following complaints would lead to a successful action under the Sale of Goods Act?

Joe bought a TV set "on approval," took it home, and installed it as part of a built-in stereo wall in his renovated recreation room. He discovered, however, that the TV set was too small, extracted it from the wall, and took it back, saying he was not happy about it. The seller asked about the minor scratches on the finish and Joe explained how it had been built into the wall, and the trouble he went to get it out again. Has title transferred? Explain.