Question 1

Quiet possession of the goods means that the goods must be of merchantable quality and free from any inherent defect.

Accepted Answer

Quiet possession of the goods means that the buyer has the right to use the goods without interference from the seller or any third party claiming the goods. It does not directly relate to the quality or defect-free nature of the goods.

Question 2

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

The exemption clause in the contract for the car does not apply because the dealer had an obligation to deliver a properly performing car that is fit for use in a consumer transaction, and a faulty transmission constitutes a fundamental breach of contract. As for the contract for the radio, it would still be covered by the Sale of Goods Act even if it was not in writing since the Act applies to all contracts for the sale of goods, whether they are in writing or not. Therefore, O'Neil would have an action for breach of contract against the dealer regarding both the car and the radio.

Question 3

Which of the following statements is correct with respect to the Sale of Goods Act?

Accepted Answer

The Sale of Goods Act includes certain implied terms that are automatically included in a contract of sale, such as terms relating to the quality and fitness of the goods being sold. The parties are generally free to agree to other terms, but those terms cannot exclude or limit the implied terms. The Sale of Goods Act only applies to the sale of goods, and not to the sale of land or the assignment of contractual claims.

Question 4

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

Accepted Answer

Option A is incorrect because, unless the contract between the parties provides otherwise, the risk of loss passes to the buyer when the seller delivers the goods to the carrier (if the contract involves shipment), or when the buyer takes possession of the goods (if the contract involves delivery without shipment).

Option B is correct because the seller has a right to retain possession of the goods until payment is received, and if payment is not made, the seller can recover the value of the goods by suing the buyer for breach of contract. Additionally, the seller can also have a possessory lien over the goods, allowing him to retain custody until payment is made.

Option C is incorrect because the Sale of Goods Act specifically applies only to the sale of goods and not to other types of transactions.

Option D is incorrect because the requirement that goods sold must be fit and of merchantable quality cannot be overridden by legislation. This requirement is a fundamental principle of the law of sale of goods, and any legislation that contradicts it would likely be struck down as unconstitutional.

Option E is incorrect because, unless the parties agree otherwise, payment is generally due immediately upon delivery of the goods.

Question 5

John bought a new car for $5000.Shortly afterwards, a bailiff acting for an unpaid chattel mortgagee who had properly registered his claim in time seized the car.In which of the following circumstances can John sue the seller?

Accepted Answer

The answer of John bought a new car for $5000.Shortly...

Question 6

Gregory went to Collegiate Sports Ltd.with his dad, who asked for some shoes for Gregory suitable for playing squash.Gregory was given a pair of running shoes suitable only for jogging.His dad paid by cash.That evening, wearing the new shoes while playing squash, Gregory broke his ankle.In the ensuing lawsuit, the statement of claim cited the provisions of the Sale of Goods Act.Which of the following is true if it were proven that the shoes were inappropriate and the cause of the injury?

Accepted Answer

The answer of Gregory went to Collegiate Sports Ltd.with his...

Question 7

Under the Sale of Goods Act, the seller has a lien against the goods and can recover those goods from the purchaser in the event of default.

Accepted Answer

Under the Sale of Goods Act, the seller's lien typically allows the seller to retain possession of the goods until payment is made, but once the goods are delivered to the buyer, the seller cannot reclaim the goods for default. The right primarily applies before the transfer of possession.

Question 8

Which of the following is true with regard to the implied terms of the Sale of Goods Act?

Accepted Answer

The Sale of Goods Act provides certain implied terms, including the requirement that the seller has the right to sell the goods (good title), the buyer will receive quiet possession, and the goods are free from any encumbrances. Option A is partially correct, as the Act does provide that goods must match their description. Option B is incorrect, as the Act does provide that goods must be fit for their intended purpose. Option C is not true, as there is no specific timeline for delivery of goods under the Act. Option D is incorrect, as goods must be of reasonable quality, not necessarily without flaw.

Question 9

Explain what obligation the Sale of Goods Act puts on the seller with respect to fitness and quality.

Accepted Answer

The answer of Explain what obligation the Sale of Goods...

Question 10

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 11

Explain what is meant by merchantable quality.

Accepted Answer

The answer of Explain what is meant by merchantable quality....

Question 12

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?

Accepted Answer

The answer of Where the parties fail to state a...

Question 13

In commercial transactions, courts view exemption clauses as having been negotiated terms of the contract with consideration calculated on the basis of the liability associated with the clause and, therefore, are reluctant to overturn these clauses when they are clear and contain no ambiguity.

Accepted Answer

This statement is true. Courts typically see exemption clauses as a negotiated part of a contract and are hesitant to disregard them if they are clearly written and unambiguous.

Question 14

If goods are purchased by description or by sample and what is actually delivered does not match the description or sample, caveat emptor applies.

Accepted Answer

Caveat emptor, meaning "let the buyer beware," does not apply in this situation because the principle of goods being as described or matching the sample is a fundamental expectation in contract law, and the seller is responsible for ensuring the goods match the description or sample provided.

Question 15

What are the rights of the purchasers when the goods do not match the description?

Accepted Answer

The answer of What are the rights of the purchasers...

Question 16

When the sale of goods is involved and a specific price has not been agreed upon, a reasonable price must be paid.

Accepted Answer

This is known as the doctrine of reasonable price or reasonable value. It is based on the idea that a party who receives a benefit from the goods or services of another party must pay a reasonable price for that benefit.

Question 17

Mrs.Quale bought a new sewing machine from Androcles' Sewing Centre because she thought that, as well as using it herself, her daughter, Susan, would also be able to use it for her high school home economics projects.Unfortunately, because of a manufacturing defect, the machine ran wild when Susan was using it and it destroyed her project, sewed the end of her finger, and sprayed oil all over the carpet.Androcles' Sewing Centre had bought the machine from Midmen Distributors Ltd., which had bought it originally from the manufacturer, General Stitchers Inc.Which one of the following statements is false with respect to the available remedies in this situation?

Accepted Answer

This statement is false because Midmen Distributors Ltd. can be held liable as an intermediary in the distribution chain under the doctrine of strict liability in tort.

Question 18

Each province has passed an international sale of goods act covering international sales transactions, based on the World Trade Organization trade agreement.

Accepted Answer

While Canada has passed a federal law known as the Canadian International Sale of Goods Act, it is not true that each province has its own international sale of goods act. The federal law applies across all provinces and territories.

Question 19

Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.

Accepted Answer

The answer of Explain the importance of the provisions of...

Question 20

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

Accepted Answer

Quiet possession is a legal concept that guarantees that goods or property can be used without interference by anyone else. This includes not only physical interference, but also interference with the owner's legal right to use the property.

Quiz 5: Legislation in the Marketplace