Deck 14: Sale of Goods

Question 1

The definition of chattels includes all of the below EXCEPT

A)animals.
B)buildings.
C)pieces of land.
D)goods that derive their value intrinsically.
E)furniture.

Answer 1

C

Question 2

Plastics Ltd.,which manufactures plastic bottles,has a contract with Carbonation Inc.under which it ships boxes of bottles to Carbonation Inc.at specified times and in specific quantities.The contract goes on to state that Carbonation Inc.can return any boxes of bottles that are not sold.Pursuant to the contract,Plastics Ltd.ships the specified number of boxes of bottles to Carbonation Ltd.'s warehouse.Two weeks later there is a fire in the warehouse and the boxes of bottles are destroyed.In this case,

A)title to the boxes of bottles passed to Carbonation Inc.at the time of the contract.
B)title to the boxes of bottles passed to Carbonation Inc.at the time they were delivered to Carbonation Inc.'s warehouse.
C)title to the boxes of bottles passed to Carbonation Inc.at the time they were destroyed by fire.
D)title in the boxes of bottles did not pass to Carbonation Inc.because the boxes of bottles had not yet been set aside by Carbonation Inc.
E)title to the boxes of bottles did not pass to Carbonation Inc.because Carbonation Inc.did not give notice of its acceptance and no fixed time for return was specified.

Answer 2

E

Question 3

John purchases a 2009 Pontiac automobile from Car Dealers Inc.Within three weeks,the car's transmission fails to work.Assuming that the car was not warranted against such an event,under the Sale of Goods Act,the failure of the transmission would amount to a breach of the implied condition of

A)description.
B)merchantable quality.
C)seller's title.
D)fitness for purpose.
E)none of the above

Answer 3

B

Question 4

The Sale of Goods Act deals with the sale of goods by sample and/or description.Which of the following statements is correct?

A)If goods are sold by sample,there is an implied term of suitability.
B)It is an implied condition that goods by description alone be of merchantable quality.
C)If goods are sold by sample and description,it is a breach of implied warranty if the goods do not correspond with both the sample and the description.
D)If goods are sold by sample only,there is an implied condition that the buyer must have a reasonable opportunity of comparing the bulk to the sample.
E)It is an implied warranty that the goods sold by sample alone be of merchantable quality.

Question 5

In the sale of goods,

A)passing of title and passing of ownership are separate concepts.
B)ownership and possession are separate concepts.
C)the change in possession and a transfer of title are the same thing.
D)the buyer has title when goods are paid for.
E)the seller has title until delivery.

Question 6

Caveat emptor,which means "let the buyer beware," functions to limit the liability of sellers.However,it is not a rigid rule.An situation in which a seller would NOT be able to use this defence would be if

A)the goods are in existence and are specific items that may be inspected by the buyer.
B)the buyer had every opportunity to inspect the goods.
C)the seller appeared to be knowledgeable about the product.
D)the seller made no misrepresentation concerning the goods.
E)the seller has made misrepresentations about the goods.

Question 7

Amos has purchased a discontinued radio clock from the local discount electronics outlet.Upon arriving home,he notices that the timer is not functional.He wonders if he could legally demand his money back and consults you.You tell him that

A)sellers are strictly liable for what they sell,so simply bring it back for a refund.
B)there is an implied condition that the goods will be of "merchantable quality."
C)since the item was discontinued,all sales are final,and the store does not need to return his money.
D)title has not passed until the seller has "put item into a deliverable state."
E)he should first consult the bill of sale for any exemption clauses.

Question 8

Every year at the end of the selling season in September,Jones & Co.,a furniture manufacturer,offers special discounts on wholesale prices for the furniture it has not sold.S Co.goes to Jones & Co.'s warehouse and buys all remaining leather sofas and pays for them.In the presence of S Co.'s representative,the sofas are immediately set aside on the warehouse loading dock for pick up by S Co.the next day.That night,the sofas are destroyed by a warehouse fire.In this case,

A)title of the sofas does not pass to S Co.until the sofas are actually on S Co.'s truck.
B)title of the sofas passed to S Co.when the sofas were set aside on the loading dock.
C)title of the sofas does not pass to S Co.until it comes to pick them up.
D)title of the sofas did not pass to S Co.because leather sofas were not specified in the contract.
E)title of the sofas does not pass to S Co.because the contract for the sofas is a conditional contract.

Question 9

Jones Ltd.places an order with Playgoods Ltd.for 100 children's playhouses.The contract provides that Playgoods Ltd.will pack the playhouses in boxes carrying the Jones Ltd.name and its "J" logo,which Jones Ltd.will supply.Jones Ltd.supplies the boxes,but before Playgoods Ltd.has had an opportunity to pack the playhouses into the boxes,the playhouses are destroyed by a fire in its warehouse.In this case,

A)title had not yet passed to Jones Ltd.because Playgoods Ltd.failed to notify Jones Ltd.that the playhouses had not been packed in the appropriate boxes.
B)title to the playhouses passed to Jones Ltd.at the time Jones Ltd.supplied the boxes.
C)title to the playhouses would have passed to Jones Ltd.when Playgoods Ltd.packed the playhouses in the appropriate boxes.
D)title to the playhouses did not yet pass to Jones Ltd.because Playgoods Ltd.failed to set the playhouses aside.
E)title to the playhouses passed to Jones Ltd.at the time of the contract.

Question 10

A Co.,a local importer of steel ingots,enters into a contract with B Co.,a large wholesaler of steel,to supply B Co.with ten 50-pound steel ingots,which B Co.will try to sell on behalf of A Co.; B Co.is to return to A Co.any unsold ingots.In this situation,the agreement is

A)an option agreement.
B)a consignment agreement.
C)an agreement to sell.
D)a sale agreement.
E)an agreement of purchase and sale.

Question 11

When a buyer relies on a catalogue and a sample in placing an order,the Sale of Goods Act implies

A)warranty of suitability.
B)condition of fitness.
C)condition of merchantability.
D)condition that the goods will correspond with the description.
E)warranty of fitness.

Question 12

The principle of caveat emptor applies only to situations where

A)the seller has made no misrepresentation about the goods.
B)the goods can be inspected by the buyer.
C)the goods are specific items.
D)the goods are in existence.
E)all of the above

Question 13

Playgrounds Inc.manufactures playgrounds for children of all ages.After discussions with a representative of Playgrounds Inc.,and relying on those discussions,Happy High School orders a playground from Playgrounds Inc.,specifying that the playground is for older children and teenagers,age 9 and over.Playgrounds Inc.delivers a playground that,when assembled,is only 1.25 metres high and cannot be used by Happy High School's children.Happy High School refuses to keep the playground and will say that under the Sale of Goods Act

A)the playground does not meet the sale by description test.
B)the playground meets the sale by description test.
C)the playground does not meet the fitness for purpose test.
D)the playground meets the fitness for purpose test.
E)the playground meets both the fitness for purpose and the sale by description tests.

Question 14

Jack buys a second-hand car from Charles,who is not a retail seller.The province in which the sale takes place does not require that the car be certified.After two months,Jack finds that the car requires substantial repairs.In this case,

A)there is a breach of the implied condition of fitness for purpose.
B)there is a breach of the implied condition of merchantable quality.
C)there is a fundamental breach of contract.
D)there is a breach of the implied warranties under the Sale of Goods Act.
E)the maxim caveat emptor applies.

Question 15

Caveat emptor is a worthwhile argument for the seller when

A)it is under the scope of Sales of Goods Act.
B)the goods are not specific.
C)the goods are not in existence.
D)the seller has made some misrepresentation.
E)the seller does not have title.

Question 16

Under the Sale of Goods Act,the seller of stolen goods can be sued by their recipient (the buyer)for breach of

A)an express condition.
B)a duty.
C)a warranty.
D)a guarantee.
E)an implied condition.

Question 17

Plastics Ltd.manufactures heavy duty plastic cogs and wheels for elevators and just received an order from Elevators Inc.for 10 cogs and 10 wheels,all heavy duty and tested for specified strength before shipment.Plastics Ltd.has already manufactured the cogs and wheels,but before it has a chance to test them,it receives an order from another company for cogs and wheels and decides to fill that order instead.In this case,

A)title in the cogs and wheels passed to Elevators Inc.at the time of the contract.
B)title in the cogs would pass as soon as the cogs and wheels were set aside for Elevators Inc.
C)title in the cogs and wheels passed to Elevators Inc.at the time they were manufactured by Plastics Ltd.
D)title in the cogs and wheels would not pass to Elevators Inc.until the cogs and wheels were set aside for Elevators Inc.and tested.
E)title in the cogs and wheels passed to Elevators Inc.when Plastics Ltd.sold the cogs and wheels to the other company.

Question 18

Colin had been having trouble with wild animals.He asked the sales associate at Hardware Sales what kind of motion detection light would be best to install in his pump house.According to the Sale of Goods Act,Colin should expect a light that

A)would not be restricted by the usual exemption clauses.
B)will need careful installation for the product to be warranteed.
C)meets his description.
D)requires skill and labour for installation,therefore is not protected by the Act.
E)is reasonably fit for the purpose.

Question 19

When goods are sold by sample as well as description,which of the following statements is correct?

A)If the goods all correspond with the description,the bulk need not correspond with the sample.
B)The description must be in expressed terms,otherwise we go by the sample.
C)The goods must be of merchantable quality.
D)The bulk of the goods must correspond with the sample only.
E)The goods must correspond to the description and the bulk must correspond with the sample.

Question 20

A,a thief,steals 100 stereo amplifiers from B's warehouse and takes them to a flea market,where he sets up a stand that makes it appear that his business is selling stereo equipment.B finds out that A has sold an amplifier to C,an amplifier dealer.In this case,under the Ontario Sale of Goods Act,

A)B can retake possession of the amplifier from C only if A accompanies him.
B)the title to the amplifier has passed to C,against whom B has no recourse.
C)B's only recourse is against C.
D)B can retake possession of the amplifier from C.
E)B has no recourse against A or C.

Question 21

Title in goods purchased by an innocent purchaser outside the ordinary course of business from a third party who did not own those goods does not pass to the innocent purchaser.

Question 22

The Sale of Goods Act makes it possible for a seller to exempt itself from the implied conditions by making the exclusions express terms of the contract.

Question 23

The implied conditions in the Sale of Goods Act apply to any and all sales of goods.

Question 24

While in the shopping mall,Mabel special ordered a $29.95 DVD from VistaVideo.She was asked to place a $10 deposit on the order because it was "store policy." A little while later,before leaving the mall,Mabel changed her mind about ordering the video because she needed the $10 for something else.VistaVideo refused to return the money.Is Mabel entitled to get the $10 back?

A)No,she is not,since the $10 was a deposit.
B)Yes,she is,because it is liquidated damages.
C)Yes,she is,since as of yet no costs were accrued in ordering the DVD.
D)Yes,she is,because the $10 was intended to be part payment.
E)No,she is not,because the $10 was not a genuine estimate of the probable loss resulting from a breach.

Question 25

A buyer who specifies goods purchased under a trade name can always rely on the implied condition of fitness for purpose in the Sale of Goods Act.

Question 26

International Shippers Corp.wants your advice on the legal implications of international trade.Business has been developing in parts of the Middle East where it's sometimes hard to collect from customers.You advise International Shippers that they should

A)ensure all of their shipments are covered by an order bill of lading.
B)first clear each contract through the relevant government department.
C)ensure all of their shipments are COD.
D)retain a lien on the goods.
E)ensure all of their shipments are covered by a straight bill of lading.

Question 27

Under the Sale of Goods Act,defects in goods sold in accordance with a sample that has been provided need not be apparent on reasonable examination.

Question 28

If in respect of a contract for the sale of goods there is a breach of warranty,the remedy available pursuant to the Sale of Goods Act is

A)damages but not repudiation of the contract.
B)damages and repudiation of the contract.
C)rescission of the contract.
D)repudiation of the contract but not damages.
E)damages or repudiation of contract.

Question 29

Under contract of sale law,which of the following is NOT a remedy available to the seller?

A)specific performance
B)resale
C)lien
D)stop
E)retention of deposit

Question 30

Ted goes to his neighbourhood hardware store and asks for a four-foot by eight-foot piece of plywood.He also requests that it be "thick and strong." Ted purchases the plywood and proceeds to use it as a makeshift bridge on his driveway over a small ditch.The first time he attempts to drive his tractor over the makeshift bridge,the plywood collapses,causing damage to the tractor.Ted's suit against the hardware store will

A)succeed for breach of implied term of fitness because Ted specifically asked for the plywood to be "thick and strong."
B)succeed because Ted has likely incurred consequential losses as well.
C)fail because Ted did not expressly state the particular purpose for which he intended to use the plywood and therefore the hardware store did not breach any implied term of fitness.
D)fail because there was no breach of the implied term as to description.
E)succeed because the hardware store breached the implied term of merchantable quality by selling the plywood to Ted in these circumstances.

Question 31

A sanction intended to compel acceptance upon delivery of goods is called a

A)stoppage in transit.
B)guarantee.
C)deposit.
D)partial payment.
E)lien.

Question 32

The Sale of Goods Act applies to provision of services.

Question 33

Which of the following is NOT a remedy of the buyer?

A)action for the price
B)sue for breach of contract
C)sue for damages in tort
D)rescission of contract
E)specific performance

Question 34

In any type of contract or quotation,goods stipulated as ready for delivery and clearly identifiable are

A)FOB (free on board).
B)CIF (cost,insurance,freight).
C)ascertained goods.
D)subject to the five rules of title transfer.
E)COD (cash on delivery).

Question 35

All of the following are characteristics of a straight bill of lading EXCEPT for the following statement:

A)A consignee may obtain possession of goods at the point of destination without surrendering such a bill to the carrier.
B)It is a receipt issued and signed by the carrier,acknowledging that specified goods have been delivered to him for shipment.
C)It may be evidence of title.
D)The shipment is consigned directly to a designated party.
E)It is a contract between the shipper and the carrier to transport the goods to a stated destination.

Question 36

"The sole warranty between the seller and buyer is the warranty set out in this contract." This written statement is an example of

A)a statement of suitability.
B)a condition of fitness.
C)a bill of lading.
D)a condition of merchantability.
E)an exemption or disclaimer clause.

Question 37

Billy stops at a yard sale and looks for old musical equipment.He finds an amplifier that he has been looking for.Billy believes it is worth a lot more money than the $50 the owner is asking for.Billy asks the owner whether or not the amplifier is in good working condition.The owner tells him that he knows nothing about the quality of the amplifier and is not prepared to comment further.Billy purchases the amplifier for $50.Later he finds out that it is stolen from a nearby music store and did not belong to the owner at the time he purchased it.Billy's action for recovery of his money against the owner will

A)fail because of the caveat emptor principle.
B)fail because the owner would not comment on the quality of the amplifier.
C)succeed because the music store will likely pay him a reward.
D)succeed because the owner breached an implied term as to title.
E)fail because Billy only learned of the problem after both parties performed their obligations under the agreement of purchase and sale.

Question 38

The Carlsons were preparing for a four-day family reunion in their home starting on June 19.On June 15 they ordered a large new dining room table from Levitts Furniture to accommodate the expected relatives.Levitts promised delivery out of their local warehouse three different mornings during the week,but each time they gave feeble reasons why they couldn't do it.On the afternoon of June 18,the Carlsons phoned Levitts,cancelled their order,and demanded their money back.What is the Carlsons' legal remedy?

A)damages for breach of warranty
B)tort damages for wrongful disposition of goods
C)remedies under consumer protection legislation
D)rescission for breach of condition
E)specific performance because of the uniqueness of the situation

Question 39

Which of the following is a remedy of the seller under the Sale of Goods Act?

A)resale
B)chattel title
C)order bill of lading
D)wrongful withholding or disposition
E)caveat emptor

Question 40

Stoppage in transit allows

A)a seller who may have neither title to goods nor possession of them to exercise control over the goods.
B)an insolvent buyer to postpone purchases.
C)a seller to stop a transportation company in an emergency.
D)the carrier to be sued for damages should a delay in transit occur.
E)the buyer to pass title to anyone he or she feels appropriate after stoppage in transit has occurred.

Question 41

What is wrongful detention,and what does it entitle a buyer to do?

Question 42

Under the Sale of Goods Act,when a person possesses goods,she or he is also the owner of the goods.

Question 43

Albert sells collectibles.He received a telephone call from Penelope White,who was looking for cranberry glass.Albert advised her that he had several sets of cranberry glass.After describing them to her over the phone,she agreed to purchase them.He shipped them to Penelope and when they arrived she refused to accept them.What remedies,if any,is Albert entitled to?

Question 44

Amanda sold goods at a flea market.She displayed her goods on a large table and marked the price with a label on each item.Dalton chose a piece of china from Amanda's table and paid her the labelled price of $59.Two days later,he returned and demanded his money back based on the fact that the piece of china was not "Royal Crown" but "Crowne Royale." Does Amanda have to return his money? What principle of law governs in this case?

Question 45

Describe four common law remedies a buyer may have against a seller of goods.

Question 46

What type of a sale of goods is subject to an implied condition that the goods shall be of merchantable quality,and under what circumstances is that implied condition avoided by the seller?

Question 47

One of the remedies of a seller is to maintain a lien on the goods.When does the right to a lien end?

Question 48

Star Implement Ltd.sells farm machinery in Weyburn,Saskatchewan.Bill Hogshead of Rosetown purchased a tractor from Star for $27 500.He paid $900 down,with the balance to be paid when the tractor was ready for shipment.Star Implement heard of a large truck heading to Rosetown with empty space large enough to accommodate the tractor.So wanting to be of good service (and before any additional payment was made),Star hurried up and placed the tractor on the truck.But when they phoned Bill to tell him the tractor was on its way,his wife answered and advised that Bill had gone to Regina to initiate bankruptcy proceedings.What remedies does Star Implement have in respect to the contract of sale?

Question 49

The vendor's remedy of lien only exists in certain circumstances.List three circumstances in which a contract of sale creates a right of lien for the seller.

Question 50

Explain the difference between a deposit and a down payment.

Question 51

Paper Products Ltd.sold paper to Lillian to use in brochures she was producing for a client.Before making the contract,Paper Products Ltd.showed Lillian a sample of the paper it was going to sell her,and Lillian approved of the choice.The paper provided to Lillian matched the sample she had been shown.One month after she bought the paper,Lillian found that it had yellowed and that it was useless for the brochures.Paper Products Ltd.is not liable to Lillian for breach of an implied term under the Sale of Goods Act because Lillian approved a sample of the paper she bought.

Question 52

What is a bill of lading and what is its purpose?

Question 53

Herman agreed to sell his entire model railway to Dixie Grant for $1700.Dixie signed an agreement that stated that the goods were available for pickup on September 1st and that she had paid a deposit of $500.Dixie refused to pick up the goods on September 1,and Herman shortly thereafter sold the goods to a third party for $1650.What right does Dixie have to the recovery of her deposit?

Question 54

Risk of loss and title to goods go hand in hand.Explain.

Question 55

Hugo agreed to purchase all the oil contained in a tank for $1 per litre.He paid a deposit of $400 and agreed to participate in measuring the quantity contained by the tank.While Hugo and the owner of the tank were walking towards the tank with the measuring equipment,the tank burst and all the oil was lost.The owner's records indicated there were 962 litres in the tank.Who had title to the spilled oil?

Question 56

If an unpaid vendor exercises his right to a lien or stoppage in transit,what must he do with the goods,and is he entitled to any other remedy?

Question 57

William Cheshire delivered an order of lighting fixtures to Bright Lighting Ltd.along with an invoice for $1200.The invoice specified that payment was due in 10 days.William was not paid and now wishes to recover his goods.Discuss his rights and remedies as against Bright Lighting Ltd.

Question 58

Jack is a sales agent.He takes delivery of motor vehicles and sells them from his dealership.When Jack makes a sale,the property in the goods passes between Jack and the buyer.

Question 59

In consumer transactions in Ontario,it may not be possible to contract out of the terms implied by the Sale of Goods Act.Explain what this means and its significance.

Question 60

Is there any difference between unascertained goods and future goods? Explain.

Question 61

John and Jane entered into an agreement for the sale and purchase of an ornate oak table.The purchase price was $450.The contract was silent as to the time for payment.John,the vendor,insisted that the $450 be paid to him before he would deliver the table.Jane insisted that the table be delivered to her before she paid the $450.Who has taken the correct position? Give the legal basis for your answer.

Question 62

Discuss the difference between title to goods,ownership,and possession of goods,using a consignment agreement to illustrate your point.

Question 63

Philip agrees to sell his 1972 Corvette to Phyllis for $25 000.Phyllis agrees to make a down payment of $12 500 immediately and to pay the remaining $12 500 within 30 days.After making the down payment,Phyllis encounters serious financial difficulties and is unable to come up with the balance of the contract price.She advises Philip that she will be unable to close the deal and asks for her down payment back.Philip refuses,claiming that the monies previously paid are to be forfeited if she does not perform her remaining obligations under the contract.What are Phyllis's chances of success in a lawsuit to recover the $12 500?

Question 64

Donald visited the premises owned by Mary's Hay Farm Ltd.and viewed a stack of more than 4000 bales of hay.He agreed to purchase 800 bales for $2.00 per bale.He paid the $1600 and advised that he was going to get his truck and would return in about three hours.When Donald returned three hours later he noticed that there was a smoldering pile of debris where the stack of bales had previously been.The entire stack had been destroyed.Who is entitled to the $1600? Give the legal basis for your answer.What additional fact do you need to know in order to confirm your answer?

Question 65

Shannon Smith sold her five-year-old Toyota to Doris Night on February 3.On the contract of sale,which both signed,she put the words "as is".Doris had test-driven the car with Shannon present on February 1 and had commented on a rattle in the front end and some noises in the transmission.Shannon replied to those inquiries as follows: "I think the rattle is from a loose heater cable and I know there are no transmission problems." On February 5,Doris telephoned Shannon and advised her that the car was inoperable because the transmission had seized up and Doris wanted to know what Shannon was going to do about it.That evening in the bar Shannon told her friends the above and they had the following comments and advice:
a.Don't pay any attention to Doris,caveat emptor applies.
b.Since the car has been delivered the contract is discharged by performance.
c.Since you allowed Doris to examine the car and test drive it the transmission failure is solely Doris' problem.
d.You shouldn't have said anything about the transmission but because you did you must fix the car or take it back and refund the purchase price.Shannon does not know what to do and asks for your advice.Comment on each of the (a)to (d)above with respect to the legal basis for each comment and its accuracy.Express your opinion of the liability (if any)of Shannon.

Question 66

Jack viewed a 1995 Mustang on the lot of Tim's Quality Autos Ltd.(Tim's).Jack approached Tim's and enquired about purchasing a vehicle.On January 5th,Jack signed a purchase agreement with Tim's to purchase the vehicle.
a.Tim's was required to fix the lock on the driver's door before delivering the vehicle to Jack.They then did fix the lock and notified Jack the car was ready.However,just prior to Jack's picking up the vehicle,it was mysteriously damaged.Who is responsible to fix the damages as between Tim's and Jack?
b.If the agreed-upon purchase price for the vehicle was $9000 and Jack paid a $5000 deposit when the agreement was signed and thereafter discovered that the vehicle was encumbered with a $6000 chattel mortgage,what courses of action are available to Jack,and what is the best one?

Question 67

Brent Cook owns and operates a farm supply store selling feed and hardware for the farm.
a.Mary Martin wants to buy a type of mink feed that must be ordered from Regina.Brent has a sample,which he shows Mary.What rights does Mary have before she is bound to accept the feed when it arrives at Brent's store,and under what circumstances can she reject the goods?
b.Donald Jones enters the store and buys 15 metres of marine rope used primarily by water skiers.The rope breaks while being used by Donald to raise bales of hay from a truck to the hay loft of Donald's barn.The bales fell onto the truck,damaging it and injuring Donald who was sitting in the cab.Donald sues Brent on the basis of breach of implied condition of fitness for the rope.What must Donald establish in order to be successful? What defences does Brent have? What is the likely outcome?

Question 68

Janice Stone wanted to go rock climbing and needed some rope.She went to Bill's Hardware Store,told the sales associate that she wanted some rope,and described to him what she was going to use it for.The sales associate recommended a polypropylene rope,and on the basis of this recommendation,Janice bought the rope.Janice used the rope for rock climbing and was injured when the rope broke.She subsequently learned that polypropylene rope is unsuitable for rock climbing because it wears wherever it is bent and is hence subject to breakage.
a.Janice sued Bill's Hardware Store.What must she prove to be successful,and what are her chances of success?
b.If Janice brought in a sample of polypropylene rope and asked specifically for that type of rope,would the result be different than (a)above?

Question 69

Don Mills wished to purchase an automobile.He saw a 1994 Mustang advertised for sale in the local newspaper.Don talked to the owner,Mary Smyth,and advised her that he didn't know much about cars but needed a reliable,comfortable car for long-distance travel.Mary confirmed that she found her Mustang comfortable and it was probably what Don needed.Don then examined the car and purchased it from Mary for $5000.They both signed a short contract,which contained a clause stating that the car was sold "as is and with no warranties whatsoever."
a.If Don found that the car was uncomfortable and not suitable for long-distance highway travel,what action,if any,could he bring against Mary,and what would be the likely outcome?
b.If,the day after Don purchased the car,the transmission failed and the engine seized up,what action could Don take against Mary? What remedies could he claim and what defences would Mary likely raise?
c.If Don discovered that the Mustang was encumbered by a chattel mortgage that was not disclosed by Mary,what remedies would be available to Don? Give the legal basis for your answer.

Question 70

ABC Ltd.enters into a contract on the sale of a filing cabinet,which was located in their Halifax warehouse.If the filing cabinet was destroyed while being transported from Halifax to the purchaser's business premises in Moncton,who would bear the loss if the terms of the contract were:
a.FOB Halifax
b.COD
c.CIF Moncton