Question 1

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

Accepted Answer

A)  "I paid $1000 for government bonds, but you have sent me shares in a private company that I never heard of!" 
B)  "You are not going to honour our contract for the land?! I planned to build on that lot in the spring!" 
C)  "Waiter, there's a spider in my sandwich." 
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." 
A)  "I paid $1000 for government bonds, but you have sent me shares in a private company that I never heard of!" 
B)  "You are not going to honour our contract for the land?! I planned to build on that lot in the spring!" 
C)  "Waiter, there's a spider in my sandwich." 
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." C

Question 2

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

Accepted Answer

A)  The Act does not provide that the goods must be fit for purpose. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. 
C)  When you buy a car and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of merchantable quality, and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days. 
A)  The Act does not provide that the goods must be fit for purpose. 
B)  If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. 
C)  When you buy a car and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a claim by a bank). 
D)  The Act provides that the goods must be of merchantable quality, and that means that the goods must be without flaw. 
E)  If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days. C

Question 3

Discuss the consumer protection legislation in place in your province in terms of its effectiveness and purpose.

Accepted Answer

This question must be answered in terms of the unique legislation in place in your particular jurisdiction, but there are some general observations that will apply to most situations. All provinces have in place a variant of a consumer protection act, covering responsibility for the goods sold and their fitness and quality, and extending to services as well. Students should discuss the consumer protection aspects of the Sale of Goods Act, including the provisions related to fitness and quality. They should also deal with the power to contract out of these provisions and the various ways the different jurisdictions have restricted this right to include exemption clauses limiting manufacturer or seller liability.
Students should also look to the poor business practices that have been controlled by statutes under the various trade practices acts or their equivalents. They should look at the kind of practices prohibited, as well as the remedies that are made available in the statutes and their effectiveness. In particular, misleading and deceptive statements made by salespeople and how they can be remedied should be addressed. Students should also include an examination of unconscionable transactions as controlled by statute and what qualifications must be met for the legislation to apply. It would also be appropriate to examine particular practices, such as door-to-door sales or referral selling practices that are subject to abuse. It is important that students discuss how these practices and abuses are controlled and the remedies available, including licensing, fines, and actions by consumer or government officials against the people who engage in such practices. Bright students will also look at the federal legislation, in particular, the federal Competition Act. They would deal with the statute's control of misleading advertising, bait and switch, and other abusive activities. They could also look at conduct that has a more indirect effect on consumers, including anti-competitive practices such as unduly restraining trade and mergers.

Question 4

Discuss, in the context of consumer protection, how legislative and other changes have helped to overcome the obstacle created by the principle of privity.

Accepted Answer

Students should discuss how the principl

Question 5

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

Accepted Answer

A)  Legislation in most provinces will not allow a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions. 
B)  A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in payment for goods that he still possesses has rights against the goods themselves as well as an action for breach of contract against the buyer. 
C)  The Sale of Goods Act does not apply to the purchase of real estate or of bonds. 
D)  If the parties do not agree otherwise, the risk of loss stays with the seller until delivery. 
E)  If the parties do not agree otherwise, the time of payment is the time of delivery. 
A)  Legislation in most provinces will not allow a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions. 
B)  A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in payment for goods that he still possesses has rights against the goods themselves as well as an action for breach of contract against the buyer. 
C)  The Sale of Goods Act does not apply to the purchase of real estate or of bonds. 
D)  If the parties do not agree otherwise, the risk of loss stays with the seller until delivery. 
E)  If the parties do not agree otherwise, the time of payment is the time of delivery.

Question 6

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

Accepted Answer

The federal Competition Act has three ma

Question 7

If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

Accepted Answer

A) True 
 B)False

Question 8

Give examples of three federal acts that have consumer protection aspects to them.

Accepted Answer

Examples include the Food and Drugs Act,

Question 9

Slipstream bought a new lawnmower for mowing his own yard at home from Mulcher Mowers Ltd., a lawn and garden tools dealer in Moose Jaw. 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

A)  The Sale of Goods Act prohibits the use of such exclusion clauses generally. 
B)  Such clauses are always effective just as long as the two parties have agreed to their inclusion in the contract. 
C)  Such clauses are only effective when there is a breach of the fundamental term of the contract, which is likely not the case here because the defects were all minor. 
D)  All such exclusion clauses are void. 
E)  In a sale of new goods by a dealer to a private consumer for his own use, legislation prohibits the seller from excluding these basic warranties with respect to fitness and quality. 
A)  The Sale of Goods Act prohibits the use of such exclusion clauses generally. 
B)  Such clauses are always effective just as long as the two parties have agreed to their inclusion in the contract. 
C)  Such clauses are only effective when there is a breach of the fundamental term of the contract, which is likely not the case here because the defects were all minor. 
D)  All such exclusion clauses are void. 
E)  In a sale of new goods by a dealer to a private consumer for his own use, legislation prohibits the seller from excluding these basic warranties with respect to fitness and quality.

Question 10

Explain what is meant by merchantable quality.

Accepted Answer

That the goods be free from an

Question 11

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.

Accepted Answer

A) True 
 B)False

Question 12

An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  A contract for the sale of a famous painting 
B)  A contract for medical services with a doctor 
C)  The trade of a car for a boat involving no money 
D)  The purchase of a house 
E)  The sale of corporate shares 
A)  A contract for the sale of a famous painting 
B)  A contract for medical services with a doctor 
C)  The trade of a car for a boat involving no money 
D)  The purchase of a house 
E)  The sale of corporate shares

Question 14

Jones walked into Sam's TV shop and said, pointing to a particular television, "I'll take that one." They wrote up the deal, and Jones was to return the next day to pay for it and pick it up. Explain who bears the risk in the meantime.

Accepted Answer

Jones bears the risk. Rule #1

Question 15

Distinguish between a sale and an agreement to sell.

Accepted Answer

A sale deals with the present transfer o

Question 16

A holder in due course is in the same position as the person from whom a negotiable instrument was received.

Accepted Answer

A) True 
 B)False

Question 17

The mission of ________ is to foster a growing, competitive, knowledge-based Canadian economy.

Accepted Answer

A)  Industry Canada 
B)  the Competition Bureau 
C)  the Superintendent of Bankruptcy 
D)  the Canadian Consumer Handbook 
E)  the Sale of Goods Act 
A)  Industry Canada 
B)  the Competition Bureau 
C)  the Superintendent of Bankruptcy 
D)  the Canadian Consumer Handbook 
E)  the Sale of Goods Act

Question 18

The following events occurred before the goods or parts of the goods were destroyed by fire. In which case would the buyer suffer the loss?

Accepted Answer

A)  Justin contracted for a piano that had to be tuned before it was in a deliverable state. It was tuned, but Justin had not been notified that it was ready. 
B)  McGrady ordered a chainsaw advertised in the Sears catalogue. 
C)  Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. 
D)  Manchesco chose which of the chairs he wanted and contracted for it, but he had agreed to pay and pick it up the next day. 
E)  Heinz contracted for all the corn in silo A. The seller still had to weigh the corn to determine the price. 
A)  Justin contracted for a piano that had to be tuned before it was in a deliverable state. It was tuned, but Justin had not been notified that it was ready. 
B)  McGrady ordered a chainsaw advertised in the Sears catalogue. 
C)  Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. 
D)  Manchesco chose which of the chairs he wanted and contracted for it, but he had agreed to pay and pick it up the next day. 
E)  Heinz contracted for all the corn in silo A. The seller still had to weigh the corn to determine the price.

Question 19

"The Sale of Goods Act is another example of consumer protection legislation." Discuss the accuracy of this statement.

Accepted Answer

The statement is incorrect. The Sale of

Question 20

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

A) True 
 B)False

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

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

Discuss the consumer protection legislation in place in your province in terms of its effectiveness and purpose.

Discuss, in the context of consumer protection, how legislative and other changes have helped to overcome the obstacle created by the principle of privity.

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

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

If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

Give examples of three federal acts that have consumer protection aspects to them.

Explain what is meant by merchantable quality.

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.

An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.

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

Jones walked into Sam's TV shop and said, pointing to a particular television, "I'll take that one." They wrote up the deal, and Jones was to return the next day to pay for it and pick it up. Explain who bears the risk in the meantime.

Distinguish between a sale and an agreement to sell.

A holder in due course is in the same position as the person from whom a negotiable instrument was received.

The mission of ________ is to foster a growing, competitive, knowledge-based Canadian economy.

The following events occurred before the goods or parts of the goods were destroyed by fire. In which case would the buyer suffer the loss?

"The Sale of Goods Act is another example of consumer protection legislation." Discuss the accuracy of this statement.

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.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Filters

Exam 16: Sales and Consumer Protection

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

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

Discuss the consumer protection legislation in place in your province in terms of its effectiveness and purpose.

Discuss, in the context of consumer protection, how legislative and other changes have helped to overcome the obstacle created by the principle of privity.

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

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

If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

Give examples of three federal acts that have consumer protection aspects to them.

Explain what is meant by merchantable quality.

The transfer of the title and possession of the goods in exchange for money must be intended or anticipated for the Sale of Goods Act to apply.

An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.

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

Jones walked into Sam's TV shop and said, pointing to a particular television, "I'll take that one." They wrote up the deal, and Jones was to return the next day to pay for it and pick it up. Explain who bears the risk in the meantime.

Distinguish between a sale and an agreement to sell.

A holder in due course is in the same position as the person from whom a negotiable instrument was received.

The mission of ________ is to foster a growing, competitive, knowledge-based Canadian economy.

The following events occurred before the goods or parts of the goods were destroyed by fire. In which case would the buyer suffer the loss?

"The Sale of Goods Act is another example of consumer protection legislation." Discuss the accuracy of this statement.

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.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Filters