Question 1

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

Accepted Answer

The Sale of Goods Act applies to contracts for the sale of goods, where goods are tangible and movable items. Option D involves a contract for a table, which is a tangible good, and the act applies even if the title passes at a future date.

Question 2

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

E

Question 3

With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is false?

Accepted Answer

The Sale of Goods Act does not exclude the possibility of equitable remedies such as specific performance. In fact, Section 52(1) of the Act specifically provides for the possibility of an order for specific performance. The other statements are all true.

Question 4

Uncle Isaac has had some difficulty in a sale-of-goods contract and wants to know if there are any mistakes in the information he has received with regard to the remedies for breach of such a contract. Indicate the true statement.

Accepted Answer

This statement is correct. According to the Sale of Goods Act, an unpaid seller who has possession of the goods has a lien on those goods and can hold them until the purchase price is paid. Option A is incorrect because a court can award a remedy for breach of both warranty and condition. Option C is incorrect because the seller can still sue for breach of contract even if they have given up possession of the goods. Option D is incorrect because the purchaser is entitled to contract remedies for breach of contract, not tort remedies. Option E is incorrect because the Sale of Goods Act does not exclude the possibility of specific performance as an equitable remedy.

Question 5

Which of the following contracts would be covered by the Sale of Goods Act?

Accepted Answer

The Sale of Goods Act applies to contracts for the sale of goods, which are tangible, movable items. A famous painting is a tangible, movable item, so its sale would be covered by the Act.

Question 6

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

Accepted Answer

The answer of To which one of the following would...

Question 7

Which of the following statements is correct with respect to a contract for the purchase of goods?

Accepted Answer

A condition is a fundamental term of a contract, so a breach of a condition will allow the victim of the breach to end the contract and not perform her side of the agreement. In contrast, a warranty is a term of the contract that does not go to the essence of the agreement and aims to provide a remedy if the goods purchased are defective. Therefore, statement D is incorrect. Statement A is also incorrect because a purchaser may have a claim against the manufacturer for other reasons, such as misrepresentation. Statement B and E are incorrect because they are only partially correct - the victim of a breach of a condition need not perform her side of the agreement, but the victim of a breach of a warranty still needs to perform her side of the agreement.

Question 8

Bob and Barb went into Logan Drugs, a self-service drug store. She bought some packaged cookies and he bought some Tilox, a cleaning solvent for tile that he hoped would remove greasy dirt from a painted kitchen chair. Because Bob wanted to work on the chair, Barb set their son, Keith, at the kitchen table with some cookies so he could watch without being in the way. After he had two cookies, Barb noticed that there were worms in the cookies. She took Keith and the cookies (made in Vancouver) to the doctor. While they were away, Bob learned too late that the Tilox did take off the grease but also the paint. The directions advised against using the product on wood or painted surfaces. On these facts, which of the following is true?

Accepted Answer

Keith, represented by a parent, would have an action against the makers of the cookies in tort law due to the presence of worms, which indicates a defect or contamination in the product.

Question 9

If you buy a toaster from a second-hand dealer of small appliances, which of the following is true?

Accepted Answer

When buying from a second-hand dealer, there is an implied term that the seller has good title, meaning the right to sell the toaster. Choices A, B, C, and D are not necessarily true and depend on the specific circumstances of the transaction, such as the terms of the agreement and any applicable laws.

Question 10

To which one of the following would the Sale of Goods Act not apply?

Accepted Answer

The Sale of Goods Act typically applies to contracts for the sale of tangible personal property. A ranch is considered real property, not personal property, so the Sale of Goods Act would not apply.

Question 11

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

Accepted Answer

In a retail sale of new goods, the seller cannot always exclude liability for breach of all implied terms in the Sale of Goods Act by a carefully drawn exemption clause. The Unfair Contract Terms Act may render such a clause invalid.

Question 12

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?

Accepted Answer

According to the Sale of Goods Act, in a sale of new goods by a dealer to a private consumer for his own use, the seller cannot exclude basic warranties with respect to fitness and quality. Slipstream purchased a new lawnmower for mowing his own yard at home from Mulcher Mowers Ltd., a lawn and garden tools dealer in Vancouver, so he is protected by this legislation.

Question 13

For the purpose of building a playhouse for his sons, Andy went to Lumberlore Ltd. and bought, with his charge card and without talking to a salesperson, the following things: a drill, lumber, and a six-foot step ladder. While working on the project, Andy noted that the drill worked but it was not powerful enough to drill into the 4x4 inch posts the playhouse needed for support. When he went toward the house to get his car keys, he found his wife unconscious. She had used the ladder to take some leaves out of the gutter, and it buckled under her weight because of its faulty design. Which of the following is true?

Accepted Answer

Title for the goods passed to Andy at the time of contract, meaning he has legal ownership and possession of the items. However, this does not void his right to remedies if any of the items were defective or not as described. It is possible that Andy can take legal action against Lumberlore Ltd. for selling him a faulty drill or a ladder with a faulty design. Andy's wife may also have a cause of action against the ladder manufacturer for product liability or negligence in tort. The fact that Andy used his charge card does not impact the application of the Sale of Goods Act in this scenario.

Question 14

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

Accepted Answer

The Consumer Protection Act provides for remedies for consumers who have been subject to a deceptive or unconscionable act or practice, including the recovery of damages and an order of rescission. Option A is incorrect, as a supplier may be prohibited from carrying on business in the province if found to have engaged in certain prohibited practices. Option B is partially correct, as an unconscionable transaction may be unenforceable, but the decision is not solely up to the court - it also depends on the circumstances of the transaction. Option D is incorrect, as there is no universal cooling-off period for consumer transactions - it depends on the specific type of transaction. Option E is incorrect, as suppliers who engage in prohibited practices may face fines or imprisonment.

Question 15

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 implies certain terms into contracts for the sale of goods, including the buyer's right to receive good title, to acquire quiet possession, and a product free from any encumbrances. Option A is incorrect as "merchantable quality" means that the goods are of a reasonable or acceptable quality, not necessarily perfect or flawless. Option B is incorrect as the Act does not impose a specific time limit for delivery. Option D is incorrect as the Act does provide for the goods to be fit for purpose. Option E is partially correct as if the lamp did not match the description, the seller would be in breach of a term, not a warranty, but it is not the best choice as it is less specific than option C.

Question 16

Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract?

Accepted Answer

In a sale-of-goods contract involving unascertained or future goods, the risk of loss does not transfer simply after a reasonable time has passed; it typically transfers when the goods are ascertained or appropriated to the contract.

Question 17

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

Accepted Answer

If a buyer's check bounces, the seller is entitled to take legal action against the buyer for breach of contract as well as enforcing their rights against the goods if they still possess them. However, the seller must act quickly to do so. The time of payment and risk of loss are typically determined by the terms of the contract, not by default rules. Option A is incorrect. Option C is also incorrect because consumer goods must be fit for their intended purpose, of merchantable quality, and match their description or sample, and such requirements cannot be waived by the seller. Option D is incorrect because the Sale of Goods Act applies only to personal property, not real estate or bonds.

Question 18

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

Accepted Answer

Option A is false because the Sale of Goods Act provides both express and implied terms that form a contract for goods. Option B is false because exemption clauses cannot exclude liability for breach of all implied terms. Option C is false because exemption, exculpatory or limitation clauses are allowed under certain circumstances. Option E is false because the "fit for purpose" provision only applies to transactions made in the course of business. Option D is true because the seller can choose to exercise either his rights against the goods or he can sue the buyer for breach of contract.

Question 19

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

Accepted Answer

The Sale of Goods Act contains some implied terms that are automatically included in a contract of sale, even if they are not specifically agreed upon by the parties. The other statements are incorrect: A) The parties are allowed to contract out of some of the terms of the Sale of Goods Act. C) The Sale of Goods Act only applies to the sale of goods, not the assignment of contractual claims. D) The Sale of Goods Act does not apply to the sale of land. E) The terms agreed upon by the parties to a sale of goods can override some of the terms of the Sale of Goods Act.

Question 20

In which of the following will the title to the goods pass to the buyer at the time of contract?

Accepted Answer

The answer of In which of the following will the...

Quiz 15: Sales and Consumer Protection

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

With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is false?

Uncle Isaac has had some difficulty in a sale-of-goods contract and wants to know if there are any mistakes in the information he has received with regard to the remedies for breach of such a contract. Indicate the true statement.

Which of the following contracts would be covered by the Sale of Goods Act?

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

Which of the following statements is correct with respect to a contract for the purchase of goods?

If you buy a toaster from a second-hand dealer of small appliances, which of the following is true?

To which one of the following would the Sale of Goods Act not apply?

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

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

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

Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract?

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

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

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

In which of the following will the title to the goods pass to the buyer at the time of contract?