Question 1

Explain how the Bankruptcy and Insolvency Act protects the position of an unpaid seller.

Accepted Answer

Under the Bankruptcy and Insolvency Act,the seller can reclaim the goods from a bankrupt if that happens within 30 days of delivery,and providing that they are still in the possession of the debtor or trustee.

Question 2

John bought a car for $5000.Shortly afterwards,a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car.In which of the following circumstances will John be least likely to recover what he is owed?

Accepted Answer

A) If the seller told John that the car was free and clear of any encumbrances even though John didn't ask 
B) If the seller told John that the car was free and clear of any encumbrances after John asked 
C) If neither John nor the seller said anything about whether the car was free and clear of encumbrances 
D) If John forgot to check the registry for liens or encumbrances 
E) If the seller can no longer be located 
A) If the seller told John that the car was free and clear of any encumbrances even though John didn't ask 
B) If the seller told John that the car was free and clear of any encumbrances after John asked 
C) If neither John nor the seller said anything about whether the car was free and clear of encumbrances 
D) If John forgot to check the registry for liens or encumbrances 
E) If the seller can no longer be located E

Question 3

When goods are sold,who normally bears the risk?

Accepted Answer

Risk follows title.That is,whoever has title to the goods at any point in the transaction is the one bearing the risk,unless the parties have specified otherwise in their agreement.

Question 4

Industry Canada was established under the Department of Industry Act.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) A haircut at the local hairstylist 
B) A contract for the sale of a ranch 
C) A contract for future goods when title will pass in the future 
D) A contract for the purchase of a house 
E) A contract for the sale of intangible property 
A) A haircut at the local hairstylist 
B) A contract for the sale of a ranch 
C) A contract for future goods when title will pass in the future 
D) A contract for the purchase of a house 
E) A contract for the sale of intangible property

Question 6

Bob,owner of a pizza business,went with his wife to pick out a new family car.Since they already knew the make and model they wanted,it did not take long before the contract was signed by the wife for a new 2017 Chevrolet.While the paperwork was being done,Bob talked with another salesman about the used cars on the lot,telling him that he needed a mechanically sound car but not a new car for his business.The salesman showed him one that he said was in good shape and would give several years of service.Bob made a very low offer that the salesman accepted,much to Bob's surprise.The contract Bob signed,like his wife's,contained a clause exempting the seller,B & S Motors,from liability for breach of any warranties,including any implied warranties under the Sale of Goods Act.A few weeks after the sale,the wife and daughter were injured in an accident caused by a faulty steering mechanism in the new car.Furthermore,the used car was not in good shape and lasted weeks,not years.On these facts,which of the following is true?

Accepted Answer

A) An exemption clause is always effective in exempting the seller from liability. 
B) The wife could not succeed in an action against B & S Motors because there is an exemption clause in the contract of sale. 
C) The daughter could sue B & S Motors for breach of contract. 
D) The daughter could sue B & S Motors for negligence. 
E) If legislation in the province prohibits a seller from overriding the requirement that goods be fit and of merchantable quality in consumer transactions,the wife may win for breach of contract. 
A) An exemption clause is always effective in exempting the seller from liability. 
B) The wife could not succeed in an action against B & S Motors because there is an exemption clause in the contract of sale. 
C) The daughter could sue B & S Motors for breach of contract. 
D) The daughter could sue B & S Motors for negligence. 
E) If legislation in the province prohibits a seller from overriding the requirement that goods be fit and of merchantable quality in consumer transactions,the wife may win for breach of contract.

Question 7

Tahmineh was very upset to find herself short of cash after her roommate had moved out without paying her share of the month's expenses.Tahmineh had no choice but to borrow money from QuickMoney Loans.Without getting legal advice,she signed a contract in which she agreed to pay back the money along with interest.The interest clause provided that interest was to be calculated at the rate of 2 percent per month.Tahmineh failed to pay back all of the funds and QuickMoney Loans sued her.What argument might she successfully raise to limit the amount of her obligation?

Accepted Answer

A) The Interest Act provides that in any contract where interest is payable,interest must be stated as an annual rate. 
B) Because the actual interest rate was over 1 percent per month,the interest provision was contrary to the Criminal Code. 
C) It is unlawful to charge interest to a person in a vulnerable state. 
D) Because Tahmineh did not receive independent legal advice,the loan agreement is void. 
E) Because Tahmineh was upset over her roommate moving out,she lacked capacity to agree to the terms of the contract. 
A) The Interest Act provides that in any contract where interest is payable,interest must be stated as an annual rate. 
B) Because the actual interest rate was over 1 percent per month,the interest provision was contrary to the Criminal Code. 
C) It is unlawful to charge interest to a person in a vulnerable state. 
D) Because Tahmineh did not receive independent legal advice,the loan agreement is void. 
E) Because Tahmineh was upset over her roommate moving out,she lacked capacity to agree to the terms of the contract.

Question 8

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Accepted Answer

1.Their free transferability from holder

Question 9

The British Columbia Business Institute (BCBI),because of its vast purchasing power,arranged a special plan through which its students could purchase new computers at a greatly discounted price.BCBI took orders from a number of students,along with a deposit as an indication of good faith,and then bought that number of computers from A.Pwee Ltd.,the manufacturer.When the students came to BCBI with the balance of the purchase price,a specific machine was selected and sold to them using a serial number,and it was then theirs to take away.By Friday afternoon of delivery week,all but three students had picked up their machines.Jackson had stopped by and completed the purchase arrangements,and a particular machine was identified by number as his.But because he was going out of town for the weekend,he arranged to pick it up on Monday.The two others,Pollock and Kline,had not yet showed up.Unfortunately,some time on the weekend,despite due care by BCBI,thieves smashed into the storeroom and stole the final three computers.Identify the true statement about liability for this loss (presuming the thieves cannot be caught).

Accepted Answer

A) BCBI will be liable for the entire loss because none of the three students had taken actual delivery. 
B) BCBI will be liable to Jackson but not to Pollock and Kline. 
C) The three students will be liable entirely for the losses. 
D) Jackson will be liable for the loss but Pollock and Kline will not. 
E) No one will be liable for the loss because this was a crime and not the fault of any of them. 
A) BCBI will be liable for the entire loss because none of the three students had taken actual delivery. 
B) BCBI will be liable to Jackson but not to Pollock and Kline. 
C) The three students will be liable entirely for the losses. 
D) Jackson will be liable for the loss but Pollock and Kline will not. 
E) No one will be liable for the loss because this was a crime and not the fault of any of them.

Question 10

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 and 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

A) The exemption clause in the contract for the car would succeed in defeating an action by O'Neil against the dealer for breach of contract. 
B) O'Neil has an action for breach of contract against the dealer because the exemption clause does not defeat the dealer's obligation to deliver a properly performing car (fit for use)in a consumer transaction. 
C) The contract for the radio is not covered by the Sale of Goods Act because the radio was not new. 
D) The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E) The exemption clause does not apply to either transaction because both involve fundamental breaches of contract. 
A) The exemption clause in the contract for the car would succeed in defeating an action by O'Neil against the dealer for breach of contract. 
B) O'Neil has an action for breach of contract against the dealer because the exemption clause does not defeat the dealer's obligation to deliver a properly performing car (fit for use)in a consumer transaction. 
C) The contract for the radio is not covered by the Sale of Goods Act because the radio was not new. 
D) The contract for the radio is not covered by the Sale of Goods Act because the contract was not in writing. 
E) The exemption clause does not apply to either transaction because both involve fundamental breaches of contract.

Question 11

Discuss the different types of negotiable instruments and indicate the significance of them being classified as negotiable.

Accepted Answer

These are bills of exchange,ch

Question 12

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder,what risk does he take?

Accepted Answer

If the note is disho

Question 13

When a buyer defaults,the seller has an unpaid ________ against the goods.

Accepted Answer

The answer of When a buyer defaults,the seller has an...

Question 14

Privity of contract does not apply to consumer transactions.

Accepted Answer

A) True 
 B)False

Question 15

Explain how the money lending business is controlled in your province.

Accepted Answer

This varies from jurisdiction to jurisdi

Question 16

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 17

"The Sale of Goods Act imposes terms into the contract that are even and fair,and that don't benefit one side over the other." Discuss the accuracy of this statement.

Accepted Answer

The statement is inaccurate.If

Question 18

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 19

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware")and the effect on a sale-of-goods contract of the Sale of Goods Act?

Accepted Answer

A) The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods. 
B) When there is a conflict between the principle of caveat emptor and the provisions of the Act,the principle prevails over the Act. 
C) Because caveat emptor applies to the quality of goods,the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking. 
D) The Act provides a number of implied contractual terms to supplement those expressed in the contract,and those implied terms override the principle of caveat emptor,when in conflict with it. 
E) The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods. 
A) The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods. 
B) When there is a conflict between the principle of caveat emptor and the provisions of the Act,the principle prevails over the Act. 
C) Because caveat emptor applies to the quality of goods,the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking. 
D) The Act provides a number of implied contractual terms to supplement those expressed in the contract,and those implied terms override the principle of caveat emptor,when in conflict with it. 
E) The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods.

Question 20

What types of transactions does the Sale of Goods Act apply to?

Accepted Answer

The contract must anticipate t

Explain how the Bankruptcy and Insolvency Act protects the position of an unpaid seller.

John bought a car for $5000.Shortly afterwards,a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car.In which of the following circumstances will John be least likely to recover what he is owed?

When goods are sold,who normally bears the risk?

Industry Canada was established under the Department of Industry Act.

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

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Discuss the different types of negotiable instruments and indicate the significance of them being classified as negotiable.

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder,what risk does he take?

When a buyer defaults,the seller has an unpaid ________ against the goods.

Privity of contract does not apply to consumer transactions.

Explain how the money lending business is controlled in your province.

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 imposes terms into the contract that are even and fair,and that don't benefit one side over the other." Discuss the accuracy of this statement.

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

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware")and the effect on a sale-of-goods contract of the Sale of Goods Act?

What types of transactions does the Sale of Goods Act apply to?

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

Explain how the Bankruptcy and Insolvency Act protects the position of an unpaid seller.

John bought a car for $5000.Shortly afterwards,a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car.In which of the following circumstances will John be least likely to recover what he is owed?

When goods are sold,who normally bears the risk?

Industry Canada was established under the Department of Industry Act.

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

What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?

Discuss the different types of negotiable instruments and indicate the significance of them being classified as negotiable.

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder,what risk does he take?

When a buyer defaults,the seller has an unpaid ________ against the goods.

Privity of contract does not apply to consumer transactions.

Explain how the money lending business is controlled in your province.

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 imposes terms into the contract that are even and fair,and that don't benefit one side over the other." Discuss the accuracy of this statement.

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

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware")and the effect on a sale-of-goods contract of the Sale of Goods Act?

What types of transactions does the Sale of Goods Act apply to?

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