Question 1

If not expressly agreed by the parties in their contract, the risk of loss of goods falls upon

Accepted Answer

A)   the purchaser because of the implied condition regarding transfer of title.
B)   the vendor, if the goods are in transit to the purchaser F.O.B. the vendor's warehouse.
C)   the purchaser, if the goods are in transit on a C.O.D. basis.
D)   the vendor, if the goods are in his possession because he must weigh or measure them for the purpose of ascertaining price.
E)   the vendor, if the goods are in his possession for any reason. D

Question 2

Stoppage in Transitu allows

Accepted Answer

A)   an insolvent buyer to postpone purchases.
B)   the carrier to be sued for damages should a delay in transit occur.
C)   the buyer to pass title to anyone he feels appropriate after stoppage in transitu has occurred.
D)   a seller to stop a transportation company in an emergency.
E)   a seller who may have neither title to goods nor possession of them to exercise control over the goods. E

Question 3

If in respect of a contract for the sale of goods there is a breach of warranty, the remedy available pursuant to the Sale of Goods Act is

Accepted Answer

A)   repudiation of the contract but not damages.
B)   damages or repudiation of contract.
C)   damages but not repudiation of the contract.
D)   damages and repudiation of the contract.
E)   rescission of the contract. C

Question 4

Don Mills wished to purchase an automobile. He saw a 1994 Mustang advertised for sale in the local newspaper. Don talked to the owner, Mary Smyth, and advised her that he didn't know much about cars but needed a reliable, comfortable car for long distance travel. Mary confirmed that she found her Mustang comfortable and it was probably what Don needed. Don then examined the car and purchased it from Mary for
$5,000. They both signed a short contract which contained a clause stating that the car was sold "as is and with no warranties whatsoever".
a. If Don found that the car was uncomfortable and not suitable for long distance highway travel, what action, if any, could he bring against Mary and what would be the likely outcome?
b. If, the day after Don purchased the car, the transmission failed and the engine seized up, what action could Don take against Mary? What remedies could he claim and what defences would Mary likely raise?
c. If Don discovered that the Mustang was encumbered by a chattel mortgage which was not disclosed by Mary, what remedies would be available to Don? Give the legal basis for your answer.

Accepted Answer

The answer of Don Mills wished to purchase an automobile....

Question 5

The implied term as to suitability for purpose under the Sale of Goods Act does not apply in a contract for sale of a specified article under its patent or other trade name. A contract for sale under "patent or other trade name" means:

Accepted Answer

A)   one in which the seller or manufacturer has a patent on the goods.
B)   goods on which there is a manufacturer's warranty
C)   goods that have a reputation in the market place
D)   goods that are labeled with a brand name
E)   none of the above.

Question 6

The implied terms in the Sale of Goods Act apply to:

Accepted Answer

A)   sale of a painting in an art gallery
B)   sale of a house
C)   sale of stocks and bonds
D)   construction contracts
E)   none of the above

Question 7

Paper Products Ltd. sold paper to Lillian to use in brochures she was producing for a client. Before making the contract, Paper Products Ltd. showed Lillian a sample of the paper it was going to sell her, and Lillian approved of the choice. The paper provided to Lillian matched the sample she had been shown. One month after she bought the paper, Lillian found that it had yellowed that it was useless for the brochures. Paper Products Ltd. is not liable to Lillian for breach of an implied term under the Sale of Goods Act because Lillian approved a sample of the paper she bought.

Accepted Answer

A) True 
 B)False

Question 8

Slater ordered a load of gravel to be delivered to his future home building site. When it arrived he tried to explain to the driver that he had forgotten his cheque book but would gladly send the money. The truck driver refused to dump the load because he was instructed to get "payment on delivery". Was the driver legally right in not dumping the load of gravel?

Accepted Answer

The answer of Slater ordered a load of gravel to...

Question 9

Janice Stone wanted to go rock climbing and needed some rope. She went to Bill's Hardware Store, told the salesman that she wanted some rope, and described to him what she was going to use it for. The salesman recommended a polypropylene rope and on the basis of this recommendation Janice bought the rope. Janice used the rope for rock climbing and was injured when the rope broke. She subsequently learned that polypropylene rope is unsuitable for rock climbing as it wears wherever it is bent and is hence subject to breakage.
a. Janice sued Bill's Hardware Store. What must she prove to be successful and what are her chances of success?
b. If Janice brought in a sample of polypropylene rope and asked specifically for that type of rope would the result be different than (a) above?

Accepted Answer

The answer of Janice Stone wanted to go rock climbing...

Question 10

The Sale of Goods Act applies to provision of services.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a remedy of the buyer?

Accepted Answer

A)   specific performance
B)   rescission of contract
C)   action for the price
D)   sue for breach of contract
E)   sue for damages in tort

Question 12

One of the remedies of a seller is to maintain a lien on the goods. When does the right to a lien end?

Accepted Answer

The answer of One of the remedies of a seller...

Question 13

ABC Ltd. enters into a contract on the sale of a filing cabinet which was located in their Halifax warehouse. If the filing cabinet was destroyed while being transported from Halifax to the purchaser's business premises in Moncton, who would bear the loss if the terms of the contract were:
a. F.O.B. Halifax
b. C.O.D.
c. C.I.F. Moncton

Accepted Answer

The answer of ABC Ltd. enters into a contract on...

Question 14

Of the following, which is NOT a common law remedy available to the buyer?

Accepted Answer

A)   rescission
B)   damages for breach of contract
C)   specific performance
D)   retention of deposit
E)   damages in tort

Question 15

In the sale of goods,

Accepted Answer

A)   the buyer has title when goods are paid for.
B)   the seller has title until delivery.
C)   the change in possession and a transfer of title are the same thing.
D)   passing of title and passing of ownership are separate concepts.
E)   ownership and possession are separate concepts.

Question 16

The Sale of Goods Act deals with the sale of goods by sample and/or description. Which of the following statements is CORRECT?

Accepted Answer

A)   It is an implied condition that goods by description alone be of merchantable quality.
B)   It is an implied warranty that the goods sold by sample alone be of merchantable quality.
C)   If goods are sold by sample only there is an implied condition that the buyer must have a reasonable opportunity of comparing the bulk to the sample.
D)   If goods are sold by sample and description, it is a breach of implied warranty if the goods do not correspond with both the sample and the description.
E)   If goods are sold by sample, there is an implied term of suitability.

Question 17

Jas commissions Alice to paint his portrait at a price of $5000. Jas is not satisfied with the result, which appears to depict a gorilla rather than Jas. Jas has a claim against Alice for breach of the implied term as to suitability for purpose and correspondence with description under the Sale of Goods Act.

Accepted Answer

A) True 
 B)False

Question 18

Amos has purchased a discontinued radio clock from the local discount electronics outlet. Upon arriving home, he notices that the timer was not functional. He wonders if he could legally demand his money back and consults you. You tell him that

Accepted Answer

A)   he should first consult the bill of sale for any exemption clauses.
B)   there is an implied conditions that the goods will be of "merchantable quality".
C)   title has not passed until the seller has "put item into a deliverable state".
D)   since the item was discontinued, all sales are final, and the store does not need to return his money.
E)   sellers are strictly liable for what they sell, so simply bring it back for a refund.

Question 19

The Carlsons were preparing for a four- day family reunion in their home starting on June 19th. On June 15th they ordered a large new dining room table from Levitts Furniture to accommodate the expected relatives. Levitts promised delivery (out of their local warehouse) three different mornings during the week, but each time they gave feeble reasons why they couldn't do it. On the afternoon of June 18th, the Carlsons phoned Levitts, canceled their order, and demanded their money back. What is the Carsons' legal remedy?

Accepted Answer

A)   tort damages for wrongful disposition of goods
B)   specific performance because of the uniqueness of the situation
C)   damages for breach of warranty
D)   rescission for breach of condition
E)   remedies under Consumer Protection Legislation

Question 20

When goods are sold by sample as well as description, which of the following statements is CORRECT?

Accepted Answer

A)   The description must be in expressed terms, otherwise we go by the sample.
B)   The bulk of the goods must correspond with the sample only.
C)   The goods must be of merchantable quality.
D)   The goods must correspond to the description and the bulk must correspond with the sample.
E)   If the goods all correspond with the description, the bulk need not correspond with the sample.

Exam 16: Sale of Goods

If not expressly agreed by the parties in their contract, the risk of loss of goods falls upon

Stoppage in Transitu allows

If in respect of a contract for the sale of goods there is a breach of warranty, the remedy available pursuant to the Sale of Goods Act is

The implied term as to suitability for purpose under the Sale of Goods Act does not apply in a contract for sale of a specified article under its patent or other trade name. A contract for sale under "patent or other trade name" means:

The implied terms in the Sale of Goods Act apply to:

The Sale of Goods Act applies to provision of services.

Which of the following is NOT a remedy of the buyer?

One of the remedies of a seller is to maintain a lien on the goods. When does the right to a lien end?

Of the following, which is NOT a common law remedy available to the buyer?

In the sale of goods,

The Sale of Goods Act deals with the sale of goods by sample and/or description. Which of the following statements is CORRECT?

Amos has purchased a discontinued radio clock from the local discount electronics outlet. Upon arriving home, he notices that the timer was not functional. He wonders if he could legally demand his money back and consults you. You tell him that

When goods are sold by sample as well as description, which of the following statements is CORRECT?