Deck 24: Sale of Goodsbusiness to Business

Question 1

It is important to know when ownership of goods passes from the seller to the buyer for three out of the following four reasons.Which answer option is NOT one of those reasons?

A)Risk of loss or damage to the goods passes with ownership.
B)Once ownership has passed to the buyer,the buyer generally cannot reject the goods for breach of a condition.
C)Possession of the goods passes with ownership.
D)Until ownership passes to the buyer,the buyer cannot pass on title to third parties.

Answer 1

C

Question 2

What types of goods are categorised as 'unascertained' goods?

A)Goods that are defined by description only,such as 'A bag of apples.'
B)Goods identified and agreed upon at the time of sale,such as 'This apple.'
C)Goods to be manufactured or acquired by the seller after the time of sale,such as 'Your next crop of apples.'
D)Goods which were previously unascertained but have now been identified and agreed upon by the parties,such as 'I accept your selection of apples in this bag.'

Answer 2

A

Question 3

How is the Sale of Goods legislation limited with respect to consumer protection?

A)The legislation only applies to contracts for the sale of goods and services.
B)The legislation has been made irrelevant by the Competition and Consumer Act 2010 (Cth).
C)The legislation is UK law and does not apply in Australia.
D)The implied conditions and warranties can be excluded by a clause in the contract.

Answer 3

D

Question 4

Why does the legislature imply certain terms into contracts involving the sale of goods? Do you agree with the legislature's reasoning?

Question 5

Explain the meaning of 'goods' under the law.

Question 6

Which of the following is the test used to distinguish between a contract for the sale of goods and a contract for work and materials?

A)If the main part of the contract is the skill and experience of one of the parties and the transfer of goods is of secondary importance,it is a contract for the sale of goods.
B)If the contract involves the transfer of ownership of goods,it must be a contract for the sale of goods.
C)If the contract involves the provision of services,it cannot be a contract for the sale of goods.
D)If the main part of the contract is the skill and experience of one of the parties and the transfer of goods is of secondary importance,it is not a contract for the sale of goods.

Question 7

Now that the Competition and Consumer Act 2010 (Cth)contains the major consumer protection provisions,what do you perceive to be the major benefits in a contract for the sale of goods of the various state Sale of Goods acts?

Question 8

The general rule under sale of goods legislation is that any damage or loss to the goods before property passes to the buyer is carried by the seller.

Question 9

Which of the following would be classified as 'goods' within the meaning of the Sale of Goods Act?

A)The repair of a watch.
B)A house.
C)A cheque.
D)Apples picked from an apple tree.

Question 10

Which of the following is the best description of 'specific' or 'existing' goods?

A)Goods that are defined by description only,such as 'A bag of apples.'
B)Goods identified and agreed upon at the time of sale,such as 'This apple.'
C)Goods to be manufactured or acquired by the seller after the time of sale,such as 'Your next crop of apples.'
D)Goods which were previously unascertained but have now been identified and agreed upon by the parties,such as 'I accept your selection of apples in this bag.'

Question 11

Which of the following is a contract for the sale of goods?

A)The supply of a computer system including hardware and software,installation of the equipment,training of staff and after sales service.
B)A visit to the dentist to get a filling.
C)Servicing a motor vehicle including installing new spark plugs,brake fluid and oil.
D)Painting a person's portrait.

Question 12

For the purposes of the Competition and Consumer Act 2010,when will a person be regarded as a consumer?

A)When they purchase goods or services.
B)When they purchase goods or services for a money consideration called the price.
C)When they purchase goods or services for less than $40,000 or which are of a kind ordinarily acquired for personal domestic or household use.
D)When they purchase goods or services for less than $40,000.

Question 13

What does the legal term caveat emptor signify?

A)The buyer must beware.
B)The buyer must be protected.
C)The buyer must be blamed.
D)The buyer must be warned.

Question 14

Which of the following is NOT an element of a contract for the sale of goods?

A)Consideration.
B)Agreement to sell.
C)Transfer of property.
D)Goods.

Question 15

What does 'sale of goods' entail under the Sale of Goods Act?

A)An exchange of goods.
B)An agreement to sell goods.
C)A barter agreement in relation to goods.
D)A lease of goods.

Question 16

Which of the following statements does NOT have the same meaning as the other three?

A)Sam has title to the goods.
B)Sam has possession of the goods.
C)Sam has ownership of the goods.
D)Sam has property in the goods.

Question 17

With respect to the law,legal terms 'property' and 'possession' are synonymous.

Question 18

The transfer of ownership of goods is central to the operation of the Sale of Goods Act.

Question 19

Which of the following statements does NOT have the same meaning as the other three?

A)Sophie has control of the goods.
B)Sophie has property in the goods.
C)Sophie has custody of the goods.
D)Sophie has possession of the goods.

Question 20

Which of the following is the best definition of 'goods' within the meaning of the Sale of Goods Act?

A)Land or things attached to land.
B)Choses in action or rights.
C)Chattels personal other than things in action or money.
D)None of the above.

Question 21

According to the Sale of Goods Act,the time for the passing of property in specific goods in a deliverable state is:

A)when the goods have been put in a deliverable state.
B)when the goods are delivered.
C)at the time of making the contract.
D)when the price is paid in full.

Question 22

Which of the following is a duty of the buyer of goods?

A)To return rejected goods promptly.
B)To inform the seller that the goods have been accepted.
C)To accept and pay for the goods in accordance with the contract.
D)To examine the goods carefully.

Question 23

Explain the meaning of the nemo dat rule.

Question 24

When does property pass under a contract for the sale of specific goods where the goods need to be weighed,measured or tested to be put into a deliverable state?

A)As soon as the seller is ready to pass the goods to the buyer.
B)As soon as the buyer accepts the offer to buy the goods.
C)As soon as the goods have been weighed,measured or tested as required.
D)As soon as the buyer pays for the goods.

Question 25

Unascertained goods are goods that are defined by description only.

Question 26

It is important to know when property passes because risk of loss of damage is with the owner.

Question 27

If a seller has a voidable title to goods,the seller cannot pass good title to the goods due to the voidable title.

Question 28

Which of the following statements is the best description of 'ascertained' goods?

A)Goods that are defined by description only,such as 'A bag of apples.'
B)Goods identified and agreed upon at the time of sale,such as 'This apple.'
C)Goods to be manufactured or acquired by the seller after the time of sale,such as 'Your next crop of apples.'
D)Goods which were previously unascertained but have now been identified and agreed upon by the parties,such as 'I accept your selection of apples in this bag.'

Question 29

Estoppel is an exception to the nemo dat quod non habet rule.

Question 30

Which of the following is NOT an exception to the nemo dat quod non habet rule?

A)The goods are purchased by a person with statutory or common law powers.
B)The seller is selling as a factor or mercantile agent.
C)The owner gives the impression that the seller has authority to sell.
D)The goods are purchased in a public market by a buyer in good faith and without knowledge of the seller's lack of title to sell.

Question 31

Future goods are goods identified and agreed upon at the time of the contract of sale.

Question 32

Which of the following statements is the best description of 'future' goods?

A)Goods that are defined by description only,such as 'A bag of apples.'
B)Goods identified and agreed upon at the time of sale,such as 'This apple.'
C)Goods to be manufactured or acquired by the seller after the time of sale,such as 'Your next crop of apples.'
D)Goods which were previously unascertained but have now been identified and agreed upon by the parties,such as 'I accept your selection of apples in this bag.'

Question 33

Why was the buyer able to refuse to pay for the goods in the case of Healy v Howlett & Sons [1919] 1 KB 337?

A)Property and risk remained with the seller.
B)The goods were unascertained.
C)The goods were identified by description only.
D)All of the above.

Question 34

What are unascertained goods?

Question 35

Why was the purchaser entitled to rescind the contract in Hammer & Barrow v Coca-Cola [1962] NZLR 723?

A)The shortfall was insignificant.
B)More than 80% of the goods were defective.
C)The purchaser was not entitled to rescind the contract.
D)Delivery by instalments had not been agreed to.

Question 36

The purpose of a Romalpa clause is to:

A)permit the seller to retake possession of the goods if the buyer defaults or goes into receivership or liquidation.
B)protect the buyer of goods from delivery of unmerchantable or unacceptable goods.
C)protect the seller of goods from failure of the buyer to pay for the goods.
D)permit the buyer of goods to retain them against a claim by the holder of security over the goods.

Question 37

In the context of an unconditional contract for the sale of specific goods in a deliverable state,who bears the loss if the goods are destroyed before the buyer takes delivery of them?

A)The seller.
B)Whoever is at fault.
C)The buyer.
D)The seller's insurer.

Question 38

Which of the following is the best definition of the nemo dat quod non habet rule?

A)A buyer can only take the same rights to goods as the person from whom they acquired them.
B)A buyer can only acquire rights if they purchase in good faith and for value.
C)A seller can only transfer rights to a buyer in good faith and for value.
D)Only the person in possession can transfer possession to a buyer.

Question 39

Absent an agreement to the contrary, the seller bears the risk of damage before goods pass to the buyer.

Question 40

Which of the following is NOT a rule about delivery of goods?

A)Delivery must be to a place specified by the buyer.
B)Delivery must be within a reasonable time.
C)The seller must deliver the exact quantity of the goods ordered.
D)The seller bears the cost of putting the goods into a deliverable state.

Question 41

An unpaid seller has rights against the goods and against the buyer.

Question 42

If the seller fails to deliver the goods,the buyer's only remedy will be damages for non-delivery.

Question 43

A buyer who rejects goods is obliged to return them to the seller.

Question 44

Which of the following is NOT a remedy of an unpaid seller?

A)Sue for the price if property has passed.
B)Damages.
C)Re-sell goods still in their possession.
D)Specific performance.

Question 45

If no time is fixed for delivery in a contract for the sale of goods,the seller is bound to send the goods within a reasonable time.

Question 46

The Vienna Sales Convention does not address contract formation because it is primarily concerned with remedies for breach of contract.

Question 47

When will the remedy of 'Specific Performance' be available to a buyer of goods?

A)Where the goods were common such as material used to make garments.
B)Where the goods were under a value of $5,000.
C)Where the goods were rare.
D)Where the goods were perishable.