CHAPTER 15 PRETEST

SALE & CONSUMER PROTECTION

1) Which one of the following concerning the Sales of Goods Act is FALSE? a. Provisions of the Act prevail over terms in the contract b. It can impose terms & conditions on the parties to a contract c. It is intended to fill the gaps in the terms of a contract d. 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 intangible shares 2) 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

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 become attached 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 land before the sale or under the contract of sale a. The sale of goods legislation will NOT cover the transaction as it relates to strawberries, as goods not include real property b. the sale of goods legislation will override the intention of the parties ii. A =FALSE, iii. It does not override the intention of the parties c. The sale of goods legislation will cover the transaction as it relates to strawberries d. Sale of goods legislation is restricted to retail and consumer transactions e. None of the Above 4) One of the main purposes of the Sale 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. True b. False - tbe primary purpose of the Act is to imply the terms that the parties to sale of good transaction leave out. 5) The Sale of goods Act does NOT apply to services but does apply to any goods installed in providing service a. True b. False 6) Which one of the following is NOT an exception to the rule that risk follows title: a. CIF contracts i. In this type of contract it does not matter when title transfers ii. Because one of the parties has been designated as being responsible 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 wrong b. FOB c. COD d. The exceptions are as specified in the contract. e. None of the above

7) Which one of the following is NOT a rule for determining who has title to the goods? a. When some repairs must be done to the goods, title remains in the hands of the seller. i. This is correct b. When the goods have to be weighed or measured, title transfers when that is done & notice is given c. When goods are not yet manufactured, unconditional appropriation and assent are required d. Title transfers o the purchaser @ the time of the contract when identified, the specific goods are sold e. When goods are delivered on approval, title transfers at the time of the contract 8) Which of the following is FALSE regading goods transferred under an agreement to sell a. Parties to an agreement may assigned risk contrary to the manner in which risk is assigned under sale of goods legislation i. true b. Title to the goods does NOT transfer immediately on the agreement being concluded. i. I tink this is true c. Determining who has title is important, as risks are assigned based on who has title i. True d. Sale of goods legislation does not apply to the future transfer of goods e. 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. False 10) As a conditional sale anticipates that money will change hands and that property will transfer, it is covered under the he Sale of goods Act i. True ii. False - 10 a. I said false because It says property b. the Sale of goods Act does not apply to land c. otherwise I would have said true d. also note that this is about monetary consideration 11) Which of the following is NOT an option for the victim of a breach of a condition? a. He or she can consider the breach of condition a breach of warranty, and accept the goods

i. True b. He or she may consider him/herself no longer bound to the contract i. True c. He or she can sue for damages but keep goods. i. False d. He or she can accept the goods and lose the right of discharging the contract i. True e. He or she can keep the goods and lose any right to a remedy i. False ii. Could still get certain deductions for breach of a condition iii. Because you could get deductions for breach of warranty 12) A sellers failure to deliver good title to the goods: a. Is never treated as a breach of condition b. Enables the purchaser to treat the contract as discharged i. c. Does not discharge the buyers obligation to perform his or her objligation under the contract d. Does not affect the sellers ability to demand the price i. False e. Is merely a breach of a warranty 13) X

- 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 warranties a. True b. False 15) The Victim of a breach of warranty is NOT released from obligations under the contract but may be entitled to damages. a. True b. False 16) S Midmen DistributorLtd. Bears no liability here because it was just a middleman in the flow of products.

17) Which one of the following is NOT a remedy available in case of default? a. Repossession of the goods after the buyer has resold them b. Rescission of the contract, if delivery has already been made to the purchaser c. Specific performance d. Stoppage of delivery of the goods e. A suit for breach of contract and for damages. 18) A

^^^^^Jody and Susan have the final word on whether the obligation will be characterized as a warranty or a condition. 19) In some juristictions, the Sale of Goods Act imposes responsibility on sellers even when exemption clauses are in place a. True b. False 20) When the goods being sold are unique, the purchaser may be able to demand specific performance. a. True b. False 21) X

the key to identifying unconscionability is a high rate interest 22) Consumer protection legislation does NOT cover which one of the following? a. Excessive rates of interest b. Disclosure of the true cost of borrowing c. Registration of moneylenders d. Prohition of misleading information e. High prices 23) Asfasf

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 the consumer and not for resale a. True b. False i. Consumer transactions: ii. involve goods or services purchased by individuals for personal use and not for resale or for business purposes 25) Consumer protection legislation is uniform throughout Canada a. True b. False 26) Asf 27) Which of the following is NOT currently within the mandate of Industry Canada? a. Fostering economic growth b. Encouraging a fair, competitive, and efficient marketplace c. Fostering competitive industry and sustainable communities d. Econouraging economic innovation e. Ensuring product safety 28) Which of the following business practices is NOT limited to recourse through civil proceedings? a. Exclusive Dealing

b. Tied selling c. Refusal to supply d. Bait-and-switch-selling e. Refusal to Deal 29) As consumer transactions largely occur within provincial boundaries the provinces have exclusive jurisdiction over the enactment of consumer protection legislation a. True b. False 30) The Competition Tribunal may impose fines and imprisonment if violations of the competiton Act are established a. True b. False 31) Which one of the following would NOT be considered an unacceptable business practice a. Referral Selling b. Abusive debt collection methods c. False Advertising d. Door-to-door sales e. Pyramid selling schemes 32) Qqwrq

both Cerniki and theneighbourhood owe a duty to care to Tom 33) Qrq

34) Collateral contracts are ones that exist between the manufacturer and the retailer, and the retailer aand the purchaser a. True b. False 35) A consumer may cancel a direct sales contract during the cooling-off period for any reason a. True b. False 36) Which one of the following is NOT generally seen as a form of negotiable instrument a. A draft b. A debit card c. A promissory note d. A Cheque e. A bill of exchange 37) A common form of a negotiable instrument is a cheque. Which of the following 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 exchange c. a cheque involves 3 parties d. even though a cheque may reqhjre payment on demand, it is not a legal tender. e. Certifying a cheque guarantees payment by the drawee 38) Asfas

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. True b. False 40) 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. True b. False