Question 1

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

Accepted Answer

A) "Waiter,there's a spider in my sandwich." 
B) "I paid $10 for government bonds,but you have sent me shares in a private company that I've never heard of!" 
C) "You are not going to honour our contract for the land?! I planned to build on that lot in the spring!" 
D) "I left the car here with orders to adjust the front lights; I did not order a tune-up!" 
E) "I hired you to wait tables,not to stand around doing stand-up comedy routines."

Question 2

John has been working and saving his money; he wants to buy a car on his 25th birthday.Which of the following is false?

Accepted Answer

A) There will be an implied term in the contract that John will get good title to the car. 
B) There will be an implied term that payment is to be made by certified cheque. 
C) There will be an implied term in the contract that John will enjoy "quiet possession." 
D) An exemption clause may modify certain implied terms. 
E) There will be an implied term in the contract that the car will be free and clear of encumbrances.

Question 3

Bankruptcy is a wholly voluntary process designed primarily to protect debtors from abusive creditors.

Accepted Answer

A) True 
 B)False

Question 4

Quiet possession means that goods have to be usable as intended without interference.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The answer of The Sale of Goods Act places certain...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The Federal Competition Act refers to predatory pricing as "abuse of dominant position."

Accepted Answer

A) True 
 B)False

Question 8

Unconscionable transactions statutes apply to any transaction where the price paid is not fair or reasonable.

Accepted Answer

A) True 
 B)False

Question 9

Discuss the function of the federal Competition Act and the role it plays in consumer protection.

Accepted Answer

The answer of Discuss the function of the federal Competition...

Question 10

With FOB contracts,title and risk always transfer at the seller's place of business.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a term implied by the Sale of Goods Act?

Accepted Answer

A) The goods are of merchantable quality. 
B) Where the goods are bought by sample,the bulk will match the sample. 
C) The statements of the salesperson are part of the contract of sale. 
D) There are no liens on the goods. 
E) The goods must match the description given of them.

Question 12

The Sale of Goods Act applies to all goods and services.

Accepted Answer

A) True 
 B)False

Question 13

Sam went to Joe's garden shop and agreed to purchase a particular bin of bark mulch.The seller,Joe,agreed and said that he would weigh it,figure out the price,and deliver it tomorrow.In the meantime,who has title to the bark mulch?

Accepted Answer

The answer of Sam went to Joe's garden shop and...

Question 14

Real and personal property can be used to secure a loan.

Accepted Answer

A) True 
 B)False

Question 15

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 to 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?

Accepted Answer

The answer of Joe left his car at Harry's tire...

Question 16

Explain two methods in which a debtor becomes bankrupt.

Accepted Answer

The answer of Explain two methods in which a debtor...

Question 17

Under the Sale of Goods Act,the general rule is that risk follows title.

Accepted Answer

A) True 
 B)False

Question 18

When the value of the security is not great enough to cover the debt,the shortfall is still owed by the debtor (but this may not be recoverable in some provinces).

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) "What do you mean you are not going through with the contract to sell me that lot? I have workers ready to start construction one week after the closing date!" 
B) "I paid a lot of money for this car and this is the third time I've had it back in the first week.Something is seriously wrong with it." 
C) "I hired you to tutor me for my chemistry exam,not to tell me your personal problems week after week!" 
D) "I left the car here with orders to adjust the front lights; I did not order a wheel alignment and I don't want to pay for it!" 
E) "I paid $1000 for government bonds,but you have sent me shares in a private company that I've never heard of!"

Question 20

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 or her mind.

Accepted Answer

A) True 
 B)False

Exam 5: Legislation in the Marketplace

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

John has been working and saving his money; he wants to buy a car on his 25th birthday.Which of the following is false?

Bankruptcy is a wholly voluntary process designed primarily to protect debtors from abusive creditors.

Quiet possession means that goods have to be usable as intended without interference.

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

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

The Federal Competition Act refers to predatory pricing as "abuse of dominant position."

Unconscionable transactions statutes apply to any transaction where the price paid is not fair or reasonable.

Discuss the function of the federal Competition Act and the role it plays in consumer protection.

With FOB contracts,title and risk always transfer at the seller's place of business.

Which of the following is not a term implied by the Sale of Goods Act?

The Sale of Goods Act applies to all goods and services.

Sam went to Joe's garden shop and agreed to purchase a particular bin of bark mulch.The seller,Joe,agreed and said that he would weigh it,figure out the price,and deliver it tomorrow.In the meantime,who has title to the bark mulch?

Real and personal property can be used to secure a loan.

Explain two methods in which a debtor becomes bankrupt.

Under the Sale of Goods Act,the general rule is that risk follows title.

When the value of the security is not great enough to cover the debt,the shortfall is still owed by the debtor (but this may not be recoverable in some provinces).

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

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 or her mind.