Exam 27: Interests in Land

Info Services Ltd. in Regina is a retailer of new and used computer products. Most of its customers are businesses, although it offers discounts to students on most models. Info Services will be liable to the purchaser of a used printer if it fails to provide repair facilities one week after the sale unless it explicitly excludes the statutory warranties at the time of sale.

Consumer protection laws have taken the following approaches:

Consumer protection in respect of credit aims to

A manufacturer may be found liable for damages under the Food and Drugs Act only when a consumer has been injured by an improperly labelled product.

Common Law remedies are available to consumers injured by defective goods, in addition to legislative provisions that hold manufacturers strictly liable.

Consumer credit-reporting agencies need only inform debtors of the names of creditors using the service, but need not reveal the information it has collected.

Common law remedies available to consumers

The labelling of disposable propane cylinders is regulated under which legislation?

John purchased a compact car from Riser Used Cars in Toronto. When John test drove the car he noticed it had brand new tires, but the interior upholstery was quite worn. John was informed by Riser's salesman that the car had been exclusively owned by an elderly lady who drove only in the summer months. The car was sold with a 40-day warranty on safety items only. Within a week after picking up the car John experienced two flat tires, which he discovered were completely bald, and the windshield wipers and heater stopped working. Remedies may be available to John under the Sale of Goods Act or Common Law principles.

Explain why one type of purchase transaction allows a buyer a "cooling-off" period, yet it is a privilege not accorded to buyers in other types of purchase transactions.

Itinerant sellers

Explain the scope of and the penalties for commissions of unfair business practices.

Consumers are protected against deficient product performance by legislation that

Contracts with itinerant sellers may be repudiated after the offer has been accepted.

Six months ago, Henri's consumer debt of $3,000 was referred to a collection agency. The first thing the agency did was to phone Henri's employer and confirm his employment. Like clockwork thereafter, every Monday afternoon Henri could expect to return home to a message on his answering machine asking for payment on account. Equally, he could expect a letter from the agency to arrive each Friday, complete with a printed return envelope for his "payment." Finally, on a monthly basis, he would receive a statement of his account, together with accruing interest, and the advice that "prompt payment will avoid our placing this matter in the hands of our lawyers for collection." Provincial legislation governs the behaviour of this type of financial agency.

Intending to purchase laundry detergent, Wendy went to her neighbourhood supermarket where her favourite brand was advertised on sale for $4.99 for a 5-kilogram box. When she arrived there were no boxes of her brand left but the store's house brand was prominently displayed for sale also at $4.99 for the same size box. At the checkout the price appears as $4.59 when the clerk scans the UPC bar code. Wendy is no longer entitled to a box of her favourite brand at the advertised price since she substituted the house brand.

Arbitration is available to resolve disputes over manufacturing defects in what kind of product?

Info Services Ltd. in Regina is a retailer of new and used computer products. Most of its customers are businesses, although it offers discounts to students on most models. Jennifer, who receives a computer purchased at Info Services as a gift from her father for university, may only enforce the performance warranties against the seller by including her father in the action.

Six months ago, Henri's consumer debt of $3,000 was referred to a collection agency. The first thing the agency did was to phone Henri's employer and confirm his employment. Like clockwork thereafter, every Monday afternoon Henri could expect to return home to a message on his answering machine asking for payment on account. Equally, he could expect a letter from the agency to arrive each Friday, complete with a printed return envelope for his "payment." Finally, on a monthly basis, he would receive a statement of his account, together with accruing interest, and the advice that "prompt payment will avoid our placing this matter in the hands of our lawyers for collection." At least two of the actions undertaken by the agency were in violation of the statute.

Taylor, a young salesman with a pharmaceutical company, wished to purchase some furnishings for the new home he and his wife had recently acquired. To do so he visited a local branch of the Consumer Finance Co. Ltd. to arrange a suitable loan. Taylor made regular payments on the loan for a number of months. In September he received a promotional pamphlet from the finance company offering, as a Christmas bonus, three months relief of payments for October, November and December without interest or penalty charges. To obtain the benefit Taylor telephoned his loans officer and made the arrangements In mid-December he received a call from the branch manager. He went to see the manager who told him he was in arrears for three months and, as far as the finance company was concerned, his loan contract was voided. The manager then gave him three choices: to pay the balance in full with interest and penalty charges, to sign a new loan contract with different terms, or do neither and be sued immediately. The manager also told Taylor that if he were sued, his credit rating would be destroyed and insisted that Taylor decide which choice he wanted before he left the office. Taylor did not have sufficient resources to pay the balance in full nor did he wish to be sued. He signed a new loan agreement with a substantially higher interest rate. Discuss the issues raised by this case. What are the rights and liabilities of the parties?