Question 1

Which of the following is not a method of alternative dispute resolution?

Accepted Answer

A) Litigation 
B) Mediation 
C) Arbitration 
D) Conciliation 
A) Litigation 
B) Mediation 
C) Arbitration 
D) Conciliation A

Question 2

Which of the following disclaimers is least likely to form part of the contract?

Accepted Answer

A) A disclaimer set out in a written contract that has been signed by the customer. 
B) A disclaimer brought to the attention of the customer as soon as the customer complains about the service provided. 
C) A disclaimer implied into the contract as a result of prior dealings between the parties. 
D) A disclaimer brought to the attention of the customer before the contract was formed. 
A) A disclaimer set out in a written contract that has been signed by the customer. 
B) A disclaimer brought to the attention of the customer as soon as the customer complains about the service provided. 
C) A disclaimer implied into the contract as a result of prior dealings between the parties. 
D) A disclaimer brought to the attention of the customer before the contract was formed. B

Question 3

Where a contract involves the provision of both goods and services it will only be a contract for the sale of goods for the purposes of application of the sale of goods legislation if:

Accepted Answer

A) the main purpose of the contract is the provision of services and the transfer of ownership of goods is ancillary to that purpose. 
B) the main focus of the contract is the transfer of ownership of the goods and the provision of services is ancillary to that purpose. 
C) the substance of the contract is the skill and expertise of one of the parties. 
D) the contract is specifically expressed to be a contract for the sale of goods. 
A) the main purpose of the contract is the provision of services and the transfer of ownership of goods is ancillary to that purpose. 
B) the main focus of the contract is the transfer of ownership of the goods and the provision of services is ancillary to that purpose. 
C) the substance of the contract is the skill and expertise of one of the parties. 
D) the contract is specifically expressed to be a contract for the sale of goods. B

Question 4

Which of the following is not a scenario amounting to a contract for the sale of goods?

Accepted Answer

A) Purchasing a sandwich you have constructed yourself from the Make Your Own Sandwich shop. 
B) Having your hair washed, blow-dried and straightened by a hairdresser. 
C) Purchasing an air-conditioning system, including commissioning and installation of that system. 
D) Buying a motor vehicle privately. 
A) Purchasing a sandwich you have constructed yourself from the Make Your Own Sandwich shop. 
B) Having your hair washed, blow-dried and straightened by a hairdresser. 
C) Purchasing an air-conditioning system, including commissioning and installation of that system. 
D) Buying a motor vehicle privately.

Question 5

An 'encumbrance' is:

Accepted Answer

A) a charge on property to secure repayment of a loan. 
B) a right to dispose of possession of property belonging to another. 
C) a defect in description of the property. 
D) a right to possession of goods. 
A) a charge on property to secure repayment of a loan. 
B) a right to dispose of possession of property belonging to another. 
C) a defect in description of the property. 
D) a right to possession of goods.

Question 6

Which of the following is not a circumstance where a court will admit verbal evidence when determining the terms of a contract?

Accepted Answer

A) To establish that a written contract is invalid or unenforceable for some reason. 
B) To establish that one party is acting as an agent for someone else. 
C) To incorporate common trade usage not referred to in the written contract. 
D) To vary the terms of a written contract even where that contract appears to be a complete record of agreement. 
A) To establish that a written contract is invalid or unenforceable for some reason. 
B) To establish that one party is acting as an agent for someone else. 
C) To incorporate common trade usage not referred to in the written contract. 
D) To vary the terms of a written contract even where that contract appears to be a complete record of agreement.

Question 7

Tom is a supplier of widgets and John is a retailer of widgets.John wants to purchase widgets from Tom for his business and they both agree verbally to a contract.Which of the following is likely to be an express term of the contract?

Accepted Answer

A) The price of the widgets which Tom stipulated and John agreed to in the course of negotiations. 
B) The requirement that the widgets be of 'merchantable quality'. 
C) The requirement that both parties act in good faith. 
D) The requirement that the widgets be packaged according to usual industry practice. 
A) The price of the widgets which Tom stipulated and John agreed to in the course of negotiations. 
B) The requirement that the widgets be of 'merchantable quality'. 
C) The requirement that both parties act in good faith. 
D) The requirement that the widgets be packaged according to usual industry practice.

Question 8

Which of the following is not an element that must be established in order to prove negligent misrepresentation?

Accepted Answer

A) The representor owed a duty of care to the representee. 
B) The representor breached their duty of care. 
C) The misrepresentation was made without belief in its truth. 
D) The breach of duty by the representor caused the loss incurred by the representee. 
A) The representor owed a duty of care to the representee. 
B) The representor breached their duty of care. 
C) The misrepresentation was made without belief in its truth. 
D) The breach of duty by the representor caused the loss incurred by the representee.

Question 9

Which of the following are 'goods' for the purposes of the sale of goods legislation?

Accepted Answer

A) Land and things attached to land such as buildings and fixtures. 
B) Intangible items of personal property such as intellectual property rights, shares and debts. 
C) Tangible items of personal property. 
D) Services involving the exercise of skill and expertise on the part of the service provider. 
A) Land and things attached to land such as buildings and fixtures. 
B) Intangible items of personal property such as intellectual property rights, shares and debts. 
C) Tangible items of personal property. 
D) Services involving the exercise of skill and expertise on the part of the service provider.

Question 10

Cavinder enjoys off-road driving and purchases a new jeep for that purpose.After returning home, he discovers that the jeep is unsuitable for off-road driving.In which of the following circumstances will Cavinder be unable to rely on the implied statutory term requiring goods to be fit for their purpose?

Accepted Answer

A) There was no written promise that the jeep would be suitable for off-road driving. 
B) The auto dealer had only started selling four-wheel drive vehicles in the past year. 
C) Cavinder is a professional off-roader who has been writing articles reviewing four-wheel drive vehicles for many years. 
D) Cavinder knew nothing about four-wheel drive vehicles and relied on the expertise of the dealer. 
A) There was no written promise that the jeep would be suitable for off-road driving. 
B) The auto dealer had only started selling four-wheel drive vehicles in the past year. 
C) Cavinder is a professional off-roader who has been writing articles reviewing four-wheel drive vehicles for many years. 
D) Cavinder knew nothing about four-wheel drive vehicles and relied on the expertise of the dealer.

Question 11

Which terms are implied by the sale of goods legislation into contracts for the sale of goods?

Accepted Answer

A) Title, description, quantity and credit. 
B) Damages, description, fitness and quantity. 
C) Credit, sample, quality and damages. 
D) Title, description, quality and fitness. 
A) Title, description, quantity and credit. 
B) Damages, description, fitness and quantity. 
C) Credit, sample, quality and damages. 
D) Title, description, quality and fitness.

Question 12

Which of the following is not a type of misrepresentation?

Accepted Answer

A) Fraudulent misrepresentation 
B) Innocent misrepresentation 
C) Reckless misrepresentation 
D) Negligent misrepresentation 
A) Fraudulent misrepresentation 
B) Innocent misrepresentation 
C) Reckless misrepresentation 
D) Negligent misrepresentation

Question 13

Which of the following statements is not true concerning an implied promise by the seller that goods will be fit for their purpose?

Accepted Answer

A) At the time the contract was formed the buyer made the intended purpose known to the seller. 
B) The buyer relied upon the seller's skill and judgement. 
C) Where the goods have several purposes, they must be reasonably fit for all of those purposes. 
D) The seller normally deals in goods of this description. 
A) At the time the contract was formed the buyer made the intended purpose known to the seller. 
B) The buyer relied upon the seller's skill and judgement. 
C) Where the goods have several purposes, they must be reasonably fit for all of those purposes. 
D) The seller normally deals in goods of this description.

Question 14

Which of the following is not a requirement that must be satisfied before a court will imply a (non-statutory) term into a contract?

Accepted Answer

A) The term is reasonable and fair. 
B) The term is necessary to make the contract viable. 
C) The term is so obvious it goes without saying. 
D) The term is in writing. 
A) The term is reasonable and fair. 
B) The term is necessary to make the contract viable. 
C) The term is so obvious it goes without saying. 
D) The term is in writing.

Question 15

Mel owns Brazilion Beauty, a beauty salon in Queensland.She accepts Debbie as an apprentice stylist.Included in Debbie's contract is a clause that states that in the event of termination of her employment, Debbie will not be able to be employed by any other beauty salon in Queensland or begin her own beauty salon in Queensland for a period of 20 years.After five years with Brazilion Beauty, Debbie leaves the salon.Which of the following is the most likely outcome?

Accepted Answer

A) Debbie will not be able to work for any beauty salon in Queensland for the next 20 years. 
B) Debbie will not be able to start her own beauty salon in Queensland for the next 20 years. 
C) Debbie will not be able to work for any beauty salon or start her own beauty salon in Queensland for the next 20 years. 
D) A court would not enforce the restraint of trade clause because it is too unreasonable. 
A) Debbie will not be able to work for any beauty salon in Queensland for the next 20 years. 
B) Debbie will not be able to start her own beauty salon in Queensland for the next 20 years. 
C) Debbie will not be able to work for any beauty salon or start her own beauty salon in Queensland for the next 20 years. 
D) A court would not enforce the restraint of trade clause because it is too unreasonable.

Question 16

Which of the following is not a type of misrepresentation that makes a contract voidable by the innocent party?

Accepted Answer

A) Fraudulent misrepresentation 
B) Negligent misrepresentation 
C) Culpable misrepresentation 
D) Innocent misrepresentation 
A) Fraudulent misrepresentation 
B) Negligent misrepresentation 
C) Culpable misrepresentation 
D) Innocent misrepresentation

Question 17

The sale of goods legislation implies into contracts for the sale of goods a number of important terms relating to delivery (in the absence of agreement to the contrary).Which of the following is not one those terms?

Accepted Answer

A) The buyer must pay to put the goods into a deliverable state. 
B) The place for delivery is the seller's place of business, if the seller has one, or the seller's residence. 
C) The seller must deliver the exact quantity of goods ordered by the buyer. 
D) The buyer is not required to accept delivery in instalments. 
A) The buyer must pay to put the goods into a deliverable state. 
B) The place for delivery is the seller's place of business, if the seller has one, or the seller's residence. 
C) The seller must deliver the exact quantity of goods ordered by the buyer. 
D) The buyer is not required to accept delivery in instalments.

Question 18

Which of the following is one of the terms implied into contracts for the sale of goods by operation of the sale of goods legislation?

Accepted Answer

A) When goods are delivered that have not been previously examined by the buyer the buyer must accept the goods even though they have not had a reasonable opportunity to examine them. 
B) If the goods contain a hidden defect that only becomes apparent after some time or use and the defect was present at the time of delivery, the seller will not be in breach of the contract and the buyer will not be entitled to terminate the contract or obtain a refund. 
C) The buyer will not be deemed to have accepted goods even though they have been delivered to the buyer and the buyer performs an act in relation to them inconsistent with the seller's ownership. 
D) The buyer will be deemed to have accepted the goods if, after the lapse of a reasonable time, the buyer retains the goods without intimating to the seller that the buyer has rejected them. 
A) When goods are delivered that have not been previously examined by the buyer the buyer must accept the goods even though they have not had a reasonable opportunity to examine them. 
B) If the goods contain a hidden defect that only becomes apparent after some time or use and the defect was present at the time of delivery, the seller will not be in breach of the contract and the buyer will not be entitled to terminate the contract or obtain a refund. 
C) The buyer will not be deemed to have accepted goods even though they have been delivered to the buyer and the buyer performs an act in relation to them inconsistent with the seller's ownership. 
D) The buyer will be deemed to have accepted the goods if, after the lapse of a reasonable time, the buyer retains the goods without intimating to the seller that the buyer has rejected them.

Question 19

Esther agrees to lease an apartment from John.Before the signing of the contract, Esther asks John if the toilets in the apartment are all working properly because she is very particular about her toilets.John assures her that they are all working properly.There is no reference to the toilets in the written contract.After moving into the apartment, Esther finds that none of the toilets work properly.Which of the following is most likely to be a consequence?

Accepted Answer

A) John is in breach of a collateral contract and Esther is entitled to damages. 
B) John has breached a condition of the lease and Esther is entitled to terminate the contract. 
C) John has committed the tort of negligence and Esther is entitled to damages. 
D) Esther is not entitled to any remedy: the lease was a written and signed contract and the parol evidence rule prevents John's verbal assurance from being included as a term of the lease. 
A) John is in breach of a collateral contract and Esther is entitled to damages. 
B) John has breached a condition of the lease and Esther is entitled to terminate the contract. 
C) John has committed the tort of negligence and Esther is entitled to damages. 
D) Esther is not entitled to any remedy: the lease was a written and signed contract and the parol evidence rule prevents John's verbal assurance from being included as a term of the lease.

Question 20

A statutory term requiring goods to be of 'merchantable quality' means:

Accepted Answer

A) the actual goods sold must correspond with the description of the goods given at or before the time of the contract in advertising, packaging or signage. 
B) the goods sold must be of a quality one would reasonable expect taking into account relevant circumstances, including the price paid for the goods. 
C) the goods must be appropriate for use in accordance with their intended purpose. 
D) the seller has the right to sell the goods to the buyer. 
A) the actual goods sold must correspond with the description of the goods given at or before the time of the contract in advertising, packaging or signage. 
B) the goods sold must be of a quality one would reasonable expect taking into account relevant circumstances, including the price paid for the goods. 
C) the goods must be appropriate for use in accordance with their intended purpose. 
D) the seller has the right to sell the goods to the buyer.

Which of the following is not a method of alternative dispute resolution?

Which of the following disclaimers is least likely to form part of the contract?

Where a contract involves the provision of both goods and services it will only be a contract for the sale of goods for the purposes of application of the sale of goods legislation if:

Which of the following is not a scenario amounting to a contract for the sale of goods?

An 'encumbrance' is:

Which of the following is not a circumstance where a court will admit verbal evidence when determining the terms of a contract?

Tom is a supplier of widgets and John is a retailer of widgets.John wants to purchase widgets from Tom for his business and they both agree verbally to a contract.Which of the following is likely to be an express term of the contract?

Which of the following is not an element that must be established in order to prove negligent misrepresentation?

Which of the following are 'goods' for the purposes of the sale of goods legislation?

Which terms are implied by the sale of goods legislation into contracts for the sale of goods?

Which of the following is not a type of misrepresentation?

Which of the following statements is not true concerning an implied promise by the seller that goods will be fit for their purpose?

Which of the following is not a requirement that must be satisfied before a court will imply a (non-statutory) term into a contract?

Which of the following is not a type of misrepresentation that makes a contract voidable by the innocent party?

The sale of goods legislation implies into contracts for the sale of goods a number of important terms relating to delivery (in the absence of agreement to the contrary).Which of the following is not one those terms?

Which of the following is one of the terms implied into contracts for the sale of goods by operation of the sale of goods legislation?

A statutory term requiring goods to be of 'merchantable quality' means:

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

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Exam 8: Contract Law: Terms of the Contract

Which of the following is not a method of alternative dispute resolution?

Which of the following disclaimers is least likely to form part of the contract?

Where a contract involves the provision of both goods and services it will only be a contract for the sale of goods for the purposes of application of the sale of goods legislation if:

Which of the following is not a scenario amounting to a contract for the sale of goods?

An 'encumbrance' is:

Which of the following is not a circumstance where a court will admit verbal evidence when determining the terms of a contract?

Tom is a supplier of widgets and John is a retailer of widgets.John wants to purchase widgets from Tom for his business and they both agree verbally to a contract.Which of the following is likely to be an express term of the contract?

Which of the following is not an element that must be established in order to prove negligent misrepresentation?

Which of the following are 'goods' for the purposes of the sale of goods legislation?

Which terms are implied by the sale of goods legislation into contracts for the sale of goods?

Which of the following is not a type of misrepresentation?

Which of the following statements is not true concerning an implied promise by the seller that goods will be fit for their purpose?

Which of the following is not a requirement that must be satisfied before a court will imply a (non-statutory) term into a contract?

Which of the following is not a type of misrepresentation that makes a contract voidable by the innocent party?

The sale of goods legislation implies into contracts for the sale of goods a number of important terms relating to delivery (in the absence of agreement to the contrary).Which of the following is not one those terms?

Which of the following is one of the terms implied into contracts for the sale of goods by operation of the sale of goods legislation?

A statutory term requiring goods to be of 'merchantable quality' means:

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Enforcement of the Contract

Contract Law: Working With Agents

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

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