Question 1

Which of the following best describes the common law position with respect to the purchase of goods?

Accepted Answer

A)  Purchasers are expected to make appropriate investigations before buying. 
B)  Sellers are liable for all defects in their goods. 
C)  Sellers are liable only for major defects in their goods. 
D)  Purchasers have a duty to ensure the goods are fit for their purpose. 
A)  Purchasers are expected to make appropriate investigations before buying. 
B)  Sellers are liable for all defects in their goods. 
C)  Sellers are liable only for major defects in their goods. 
D)  Purchasers have a duty to ensure the goods are fit for their purpose. A

Question 2

With which of the following is the determination of the normal measure of damages for non-acceptance synonymous under the sale of goods legislation?

Accepted Answer

A)  the seller's obligation to mitigate 
B)  the seller's action for price 
C)  the buyer's action for price 
D)  the buyer's duty to mitigate 
A)  the seller's obligation to mitigate 
B)  the seller's action for price 
C)  the buyer's action for price 
D)  the buyer's duty to mitigate A

Question 3

Alison advised the sales manager at SpudsRUs Ltd.that she had rejected the shipment of potatoes received from Spuds that morning.As this was the second consecutive shipment from Spuds contaminated with blight,Alison also advised Spuds she was cancelling the contract.Why is Alison able to do so?

Accepted Answer

A)  because of the breach of innominate term 
B)  because of the right of repudiation 
C)  because of the breach of warranty 
D)  because of the doctrine of caveat emptor 
A)  because of the breach of innominate term 
B)  because of the right of repudiation 
C)  because of the breach of warranty 
D)  because of the doctrine of caveat emptor B

Question 4

What is the role placed by law on the purchaser of a product with respect to securing the entitlement to a common law remedy?

Accepted Answer

A)  to facilitate the transfer of ownership of goods 
B)  to be aware of federal and provincial regulations 
C)  to ensure product expectations are contractual 
D)  to report incidents of unfair selling practices 
A)  to facilitate the transfer of ownership of goods 
B)  to be aware of federal and provincial regulations 
C)  to ensure product expectations are contractual 
D)  to report incidents of unfair selling practices

Question 5

Which of the following prohibits the defence of privity of contract?

Accepted Answer

A)  provincial sale of goods legislation 
B)  federal and provincial consumer protection legislation 
C)  provincial consumer protection legislation 
D)  federal,provincial,and municipal sale of goods legislation 
A)  provincial sale of goods legislation 
B)  federal and provincial consumer protection legislation 
C)  provincial consumer protection legislation 
D)  federal,provincial,and municipal sale of goods legislation

Question 6

Which of the following is a warranty implied by the Sale of Goods Act?

Accepted Answer

A)  that the goods will be of merchantable quality 
B)  that the goods are free of liens and encumbrances 
C)  that the goods are fit for their intended purpose 
D)  that goods sold by sample will correspond with the sample 
A)  that the goods will be of merchantable quality 
B)  that the goods are free of liens and encumbrances 
C)  that the goods are fit for their intended purpose 
D)  that goods sold by sample will correspond with the sample

Question 7

Classification of the relevant term of the contract for sale of goods is essential to determining whether the goods sold by description actually correspond with the description.

Accepted Answer

A) True 
 B)False

Question 8

What is the term for advertising a product at a very low price when you have an insufficient supply to meet expected demand?

Accepted Answer

A)  falsity of advertising 
B)  bait and switch 
C)  unfair practices 
D)  misleading advertising 
A)  falsity of advertising 
B)  bait and switch 
C)  unfair practices 
D)  misleading advertising

Question 9

A judge has found that Clear View Windows Inc.is liable to pay damages to a client for breach of one of its implied obligations under the Sale of Goods Act.Which of the following statements best describes the nature of the implied term breached by Clear View?

Accepted Answer

A)  condition 
B)  pre-contractual term 
C)  warranty 
D)  covenant 
A)  condition 
B)  pre-contractual term 
C)  warranty 
D)  covenant

Question 10

Which of the five transfer of title rules would mostly likely be applied to determine when title passed in the case of a standing order contract?

Accepted Answer

A)  Rule 1 
B)  Rule 2 
C)  Rule 3 
D)  Rule 4 
A)  Rule 1 
B)  Rule 2 
C)  Rule 3 
D)  Rule 4

Question 11

It is an implied warranty of the Sale of Goods Act that that the seller has the right to sell the goods.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would most strongly influence the remedies available to a consumer under consumer protection legislation?

Accepted Answer

A)  the reasonable foreseeability of damages 
B)  the seriousness of the breach of implied warranty 
C)  the onus on the party at fault to act quickly 
D)  the onus on the party at fault to correct the breach 
A)  the reasonable foreseeability of damages 
B)  the seriousness of the breach of implied warranty 
C)  the onus on the party at fault to act quickly 
D)  the onus on the party at fault to correct the breach

Question 13

Briefly discuss the right of repudiation with respect to the sale of goods.

Accepted Answer

The breach of a condition,whether in a s

Question 14

The concept of protecting the consumer implicitly assumes that the commercial purchaser is better able to take care of itself and does not require any kind of safeguards.

Accepted Answer

A) True 
 B)False

Question 15

Marta went to the local office supply store to buy a few packages of grey linen bond paper.The clerk showed Marta laminated covered samples but refused to let her open the wrapped packages for comparison purposes.She made the purchase but was asked by her office manager to return the paper because it was too thin.According to the Sale of Goods Act,why will the merchant likely have to accept the return of the product?

Accepted Answer

A)  The seller refused the opportunity to compare goods with a sample. 
B)  The buyer relied on the description of goods by the seller. 
C)  The buyer made the intended use known at the time of purchase. 
D)  Goods sold by description must correspond to the description. 
A)  The seller refused the opportunity to compare goods with a sample. 
B)  The buyer relied on the description of goods by the seller. 
C)  The buyer made the intended use known at the time of purchase. 
D)  Goods sold by description must correspond to the description.

Question 16

Provinces have legislated to address selling practices that generally can be described as unfair.Explain the context under which unfairness typically arises,and list unfair practices affected by this legislation.

Accepted Answer

Unfairness typically arises in the conte

Question 17

Which of the following transactions would NOT fall under the Sale of Goods Act?

Accepted Answer

A)  barter of a car for a motorcycle 
B)  sale of a bag of soil 
C)  sale of microwave oven 
D)  sale of office supplies 
A)  barter of a car for a motorcycle 
B)  sale of a bag of soil 
C)  sale of microwave oven 
D)  sale of office supplies

Question 18

Briefly outline some of the limitations of sale of goods legislation.

Accepted Answer

The Sale of Goods Act:
1) applies only t

Question 19

The rules contained in the sale of goods legislation that determine when title to goods shifts also affect the seller's right to claim damages for non-acceptance.

Accepted Answer

A) True 
 B)False

Question 20

Explain the difference between the shipping terms "c.i.f." and "f.o.b." Which shipping term imposes the most obligations on the seller?

Accepted Answer

An agreement to send the goods "c.i.f."

Exam 23: The Sale of Goods

Which of the following best describes the common law position with respect to the purchase of goods?

With which of the following is the determination of the normal measure of damages for non-acceptance synonymous under the sale of goods legislation?

Alison advised the sales manager at SpudsRUs Ltd.that she had rejected the shipment of potatoes received from Spuds that morning.As this was the second consecutive shipment from Spuds contaminated with blight,Alison also advised Spuds she was cancelling the contract.Why is Alison able to do so?

What is the role placed by law on the purchaser of a product with respect to securing the entitlement to a common law remedy?

Which of the following prohibits the defence of privity of contract?

Which of the following is a warranty implied by the Sale of Goods Act?

Classification of the relevant term of the contract for sale of goods is essential to determining whether the goods sold by description actually correspond with the description.

What is the term for advertising a product at a very low price when you have an insufficient supply to meet expected demand?

A judge has found that Clear View Windows Inc.is liable to pay damages to a client for breach of one of its implied obligations under the Sale of Goods Act.Which of the following statements best describes the nature of the implied term breached by Clear View?

Which of the five transfer of title rules would mostly likely be applied to determine when title passed in the case of a standing order contract?

It is an implied warranty of the Sale of Goods Act that that the seller has the right to sell the goods.

Which of the following would most strongly influence the remedies available to a consumer under consumer protection legislation?

Briefly discuss the right of repudiation with respect to the sale of goods.

The concept of protecting the consumer implicitly assumes that the commercial purchaser is better able to take care of itself and does not require any kind of safeguards.

Provinces have legislated to address selling practices that generally can be described as unfair.Explain the context under which unfairness typically arises,and list unfair practices affected by this legislation.

Which of the following transactions would NOT fall under the Sale of Goods Act?

Briefly outline some of the limitations of sale of goods legislation.

The rules contained in the sale of goods legislation that determine when title to goods shifts also affect the seller's right to claim damages for non-acceptance.

Explain the difference between the shipping terms "c.i.f." and "f.o.b." Which shipping term imposes the most obligations on the seller?

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

An Introduction to Contracts

Forming Contractual Relationships

The Terms of a Contract

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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