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CHAPTER 15 PRETEST SALE & CONSUMER PROTECTION

1) Which one of the following concerning theSales of Goods Act is FALSE?a. Provisions of the Act prevail over terms in the contractb. It can impose terms & conditions on the parties to a contractc. It is intended to fill the gaps in the terms of a contractd. It applies to all situations where goods are baught and sold.e. The statute embodies case law and complements normal rules of

contract law

2) it is the shares because they are intangibleshares2) this question is pretty much asking which of the following is not a sale of

a good

- because the Sale of goods act can only apply to the sale of goods

- chattel = good

- does not matter whether or not contract is made verbally, but note that for the

contract to exist, all the elements of basic contract law must exist (capacity,

consensus, legality, consideration, intention)

must be a tangible, physicalmoveable good

- Sale of goods act does NOT APPLY TO INTANGIBLE GOODS, such as

service.

a) food..dinner-->food = good

b) piano --->chattel

c) Shares-->INTANGIBLE

d) Brake hose supplied and installed in a car

e) printer

2) is the shares--->contracts for intangibles such as services or the exchange of

negotiable instruments, stockets, bonds, and other documents representing

rights or claims (referred to as choses in action), are NOT COVERED BY THE

ACT

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3)-because, this is regarding a property-and the Sale of Goods Act does not apply to land-building and materials are subject to the Sale of Goods Act until they becomeattached to land.-They are then treated as part of the real property-And are not subject to Sale of Goods Act.-Unless the contract itself provides for the building to be served from the landbefore the sale or under the contract of sale

a. The sale of goods legislation will NOT cover the transaction as it relatesto strawberries, as goods not include real property

b. the sale of goods legislation will override the intention of the partiesii. A =FALSE,

iii. It does not override the intention of the partiesc. The sale of goods legislation will cover the transaction as it relates tostrawberries

d. Sale of goods legislation is restricted to retail and consumertransactions

e. None of the Above4)One of the main purposes of theSale of goods act is to supply, by

implication, many of the terms that have been inadvertently left out of

contracts involving the purchase of goods

a. Trueb. False

- tbe primary purpose of the Act is to imply the terms that the parties to sale of good

transaction leave out.

5)TheSale of goods Act does NOT apply to services but does apply to anygoods installed in providing service

a. Trueb. False

6)Which one of the following is NOT an exception to the rule that riskfollows title:

a. CIF contractsi. In this type of contract it does not matter when title transfers

ii. Because one of the parties has been designated as beingresponsible for paying the cost involved in the shipping of

those goods as well as arranging insurance,

iii. In the process assuming the risk if anything goes wrongb. FOBc. CODd. The exceptions are as specified in the contract.e. None of the above

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7)Which one of the following is NOT a rule for determining who has titleto the goods?

a. When some repairs must be done to the goods, title remains in thehands of the seller.

i. This is correctb. When the goods have to be weighed or measured, title transfers whenthat is done & notice is givenc. When goods are not yet manufactured, unconditional appropriation

and assent are required

d. Title transfers o the purchaser @ the time of the contract whenidentified, the specific goods are sold

e. When goods are delivered on approval, title transfers at the time ofthe contract

8)Which of the following is FALSE regading goods transferred under anagreement to sell

a. Parties to an agreement may assigned risk contrary to the manner inwhich risk is assigned under sale of goods legislation

i. trueb. Title to the goods does NOT transfer immediately on the agreement

being concluded.

i. I tink this is truec. Determining who has title is important, as risks are assigned based on

who has title

i. Trued. Sale of goods legislation does not apply to the future transfer of goodse. A cost, insurance, and freight contract (CIF contract) can override

provisions of sale of goods legislation

9)Once a truckload of wheat has been weighed, title passes to the buyer.i. True

ii. False10) As a conditional sale anticipates that money will change handsand that property will transfer, it is covered under the heSale of goods Act

i. Trueii. False

- 10a. I said false because It says propertyb. the Sale of goods Act does not apply to landc. otherwise I would have said trued. also note that this is about monetary

consideration

11) Which of the following is NOT an option for the victim of a breach of acondition?

a. He or she can consider the breach of condition a breach of warranty,and accept the goods

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i. Trueb. He or she may consider him/herself no longer bound to the contract

i. Truec. He or she can sue for damages but keep goods.

i. Falsed. He or she can accept the goods and lose the right of discharging thecontract

i. Truee. He or she can keep the goods and lose any right to a remedy

i. Falseii. Could still get certain deductions for breach of a condition

iii. Because you could get deductions for breach of warranty12) A sellers failure to deliver good title to the goods:

a. Is never treated as a breach of conditionb. Enables the purchaser to treat the contract as discharged

i.c. Does notdischarge the buyers obligation to perform his or herobjligation under the contractd. Does notaffect the sellers ability to demand the price

i. Falsee. Is merely a breach of a warranty

13) X

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- for the question above, it is------As the skis did not match the description, it is a breach of the EXPRESS condition

that the goods matched the description.

14) Terms of a sale of goods contract are called conditions or warrantiesa. Trueb. False

15) The Victim of a breach of warranty is NOT released from obligationsunder the contract but may be entitled to damages.

a. Trueb. False

16) SMidmen DistributorLtd. Bears no liability here because it was just a

middleman in the flow of products.

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17) Which one of the following is NOT a remedy available in case ofdefault?

a. Repossession of the goods after the buyer has resold themb. Rescission of the contract, if delivery has already been made to the

purchaser

c. Specific performanced. Stoppage of delivery of the goodse. A suit for breach of contract and for damages.

18) A

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^^^^^Jody and Susan have the final word on whether the obligation will becharacterized as a warranty or a condition.

19) In some juristictions, theSale of Goods Actimposes responsibility onsellers even when exemption clauses are in place

a. Trueb. False

20) When the goods being sold are unique, the purchaser may be able todemand specific performance.

a. Trueb. False

21) X

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the key to identifying unconscionability is a high rate interest

22) Consumer protection legislation does NOT cover which one of thefollowing?

a. Excessive rates of interestb. Disclosure of the true cost of borrowingc. Registration of moneylendersd. Prohition of misleading informatione. High prices

23) Asfasf

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Consumer protection legislation will not cover Judy as the transaction involves the

provision of services and not simply the sale of goods

24) Consumer transactions involve goods intended for use by theconsumer and not for resale

a. Trueb. Falsei. Consumer transactions:

ii. involve goods or services purchased by individuals forpersonal use and not for resale or for business purposes

25) Consumer protection legislation is uniform throughout Canadaa. Trueb. False

26) Asf27) Which of the following is NOT currently within the mandate of

Industry Canada?

a. Fostering economic growthb. Encouraging a fair, competitive, and efficient marketplacec. Fostering competitive industry and sustainable communitiesd. Econouraging economic innovatione. Ensuring product safety

28) Which of the following business practices is NOT limited to recoursethrough civil proceedings?

a. Exclusive Dealing

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b. Tied sellingc. Refusal to supplyd. Bait-and-switch-sellinge. Refusal to Deal

29) As consumer transactions largely occur within provincial boundariesthe provinces have exclusive jurisdiction over the enactment ofconsumer protection legislation

a. Trueb. False

30) The Competition Tribunal may impose fines and imprisonment ifviolations of the competiton Act are established

a. Trueb. False

31) Which one of the following would NOT be considered an unacceptablebusiness practice

a. Referral Sellingb. Abusive debt collection methodsc. False Advertisingd. Door-to-door salese. Pyramid selling schemes

32) Qqwrq

both Cerniki and theneighbourhood owe a duty to care to Tom

33) Qrq

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34) Collateral contracts are ones that exist between the manufacturer and

the retailer, and the retailer aand the purchaser

a. Trueb. False

35) A consumer may cancel a direct sales contract during the cooling-offperiod for any reason

a. Trueb. False

36) Which one of the following is NOT generally seen as a form ofnegotiable instrument

a. A draftb.

A debit cardc. A promissory note

d. A Chequee. A bill of exchange

37) A common form of a negotiable instrument is a cheque. Which of thefollowing is FALSE regarding cheques?

a. a cheque only involves the drawer and the payee b. a cheque is more common today than a bill of exchangec. a cheque involves 3 partiesd. even though a cheque may reqhjre payment on demand, it is not a

legal tender.

e. Certifying a cheque guarantees payment by the drawee38) Asfas

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39) The essential characteristic of a negotiable instrument is its

transferability; when a negotiable instrument is transferred to an

innocent 3rd party, she can enforce the instrument despite any

difficulties that arise under the original transaction.

a. Trueb. False40) Cheques are negotiable instruments that involve 3 parties and can be

referred to as a bill of exchange drawn on a bank, payable on demand

a. Trueb. False