Question 1

With regard to a contract for the sale and purchase of goods,which of the following is false?

Accepted Answer

A)   Title to the goods may pass to the buyer at the time of contract.
B)   Contracts for the sale of goods valued at more than $2 must be in writing in order to be enforceable.
C)   The Sale of Goods Act provides a number of implied terms that may be added to the contract if the parties failed to mention those particular matters.
D)   To guard against loss, a buyer of costly goods should have his insurance in place by the time that title passes to him, because the person with title generally bears the loss.
E)   The buyer of used goods has the protection of the implied terms of the Sale of Goods Act, but the Act does not automatically void an exemption clause in a contract for the sale of used goods. B

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

The key issues involving gift cards relate to expiry dates and fees.

Accepted Answer

A) True 
 B)False  True

Question 4

Jones bought a car from Smith,giving Smith a certified cheque drawn on the Bank of Commerce in payment.Smith got the car home and discovered that,instead of a new engine,as had been represented to her,a used engine had been installed.She immediately went to the bank to stop payment on the cheque.Explain her legal position.

Accepted Answer

The answer of Jones bought a car from Smith,giving Smith...

Question 5

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is false.

Accepted Answer

A)   The person who signs and issues the cheque is the drawer. The person who is owed the money and receives the cheque is the drawee.
B)   The person who signs a draft is the drawer; the party commanded to pay is the drawee.
C)   An acceptor of a draft will become liable to the payee for the amount of the draft.
D)   The payee of a negotiable instrument can negotiate the instrument to a holder, who will be remote in relation to the drawer.
E)   The person who signs a promissory note is the maker of the note, and unlike a cheque, the note will not include a drawee.

Question 6

Which of the following statements accurately describe 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 consumer has been subject to a deceptive or unconscionable act or practice, he may recover damages and an order of rescission.
C)   In all consumer transactions, there is a cooling-off period of seven days in which the consumer can call off the deal.
D)   Where a supplier engages in a deceptive or unconscionable act, he is neither subject to fines nor jail.
E)   A deceptive or unconscionable supplier does not lose his right to carry on business in the province.

Question 7

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

Accepted Answer

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

Question 8

Explain three significant contributions of the federal Competition Act.

Accepted Answer

The answer of Explain three significant contributions of the federal...

Question 9

Explain the significance of a manufacturer's warranty on products such as a camera and an MP3 player,and discuss why it is necessary with respect to the Sale of Goods Act.

Accepted Answer

The answer of Explain the significance of a manufacturer's warranty...

Question 10

Privity of contract does not apply to consumer transactions.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   Legislation allows a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions.
B)   A seller who has been given a cheque that "bounces" (dishonoured for insufficient funds) , in payment for goods that he still possesses, has rights against the goods themselves as well as an action for breach of contract against the buyer.
C)   The Sale of Goods Act also applies to the purchase of real estate and of bonds.
D)   If the parties do not agree otherwise, the risk of loss stays with the seller until delivery.
E)   If the parties do not agree otherwise, the time of payment is 30 days after the time of delivery.

Question 12

Which of the following is not a federal statute with a consumer protection aspect?

Accepted Answer

A)   Trade Secrets Act
B)   Precious Metals Marketing Act
C)   Consumer Package and Labelling Act
D)   Textile Labelling Act
E)   Competition Act

Question 13

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?

Accepted Answer

A)   Triffle's company vs. Computerheaven for breach of a warranty because the system was not of merchantable quality
B)   Triffle's company vs. Computerheaven for breach of a condition because the system was not fit for purpose
C)   Triffle's company vs. the manufacturer for frustration.
D)   Triffle's employee vs. Computerheaven for negligence.
E)   Triffle's employee vs. Triffle Company for breach of condition.

Question 14

"The purpose of 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 this statement.

Accepted Answer

The answer of "The purpose of the Sale of Goods...

Question 15

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?

Accepted Answer

The answer of When goods are en route to the...

Question 16

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)   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.
B)   Maureen contracts for Ms. Roberts' next year's pumpkin crop.
C)   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.
D)   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.
E)   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.

Question 17

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

Question 18

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 19

There is a cooling off period in all consumer sales transactions where the purchaser of goods has a period of time in which to change his mind.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)   Legislation in most provinces will not allow a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions.
B)   A seller who has been given a cheque that "bounces" (dishonoured for insufficient funds) , in payment for goods that he still possesses, has rights against the goods themselves as well as an action for breach of contract against the buyer.
C)   The Sale of Goods Act does not apply to the purchase of real estate or of bonds.
D)   If the parties do not agree otherwise, the risk of loss stays with the seller until delivery.
E)   If the parties do not agree otherwise, the time of payment is the time of delivery.

Exam 15: Sales and Consumer Protection

With regard to a contract for the sale and purchase of goods,which of the following is false?

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

The key issues involving gift cards relate to expiry dates and fees.

Read the following statements with regard to the parties involved with negotiable instruments and indicate which is false.

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

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

Explain three significant contributions of the federal Competition Act.

Explain the significance of a manufacturer's warranty on products such as a camera and an MP3 player,and discuss why it is necessary with respect to the Sale of Goods Act.

Privity of contract does not apply to consumer transactions.

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

Which of the following is not a federal statute with a consumer protection aspect?

"The purpose of 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 this statement.

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?

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?

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

There is a cooling off period in all consumer sales transactions where the purchaser of goods has a period of time in which to change his mind.

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