Deck 9: Sale of Goods and Consumer Protection Law

Question 1

Baker agreed to purchase a set of books on display in Black's Book Store.The price for the set was $300,and Baker gave Black $150 to "bind the bargain." Black delivered the books to Baker's home the next day,but Baker refused delivery,as he had found a similar set in another shop at a slightly lower price.
Baker is entitled to a return of his $150,because the title to the goods had not passed.

Answer 1

False

Question 2

Simple agreed to purchase a quantity of bird feed for his canary from a local pet shop.The shopkeeper agreed to weigh the feed,and have it in a package for Simple when he returned in one hour.The shopkeeper weighed the feed,and wrote the weight,price,and Simple's name on the package.Before Simple returned,the package was stolen from the shop.
The goods were unascertained goods,and title passed when they were unconditionally appropriated to Simple by the seller's act of writing Simple's name on the package.

Answer 2

False

Question 3

B.Jones entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000.The purchase was to be on credit,subject to a favourable credit report on Jones.Marina Boats checked with Credit Reporting Company,and was informed that a B.Jones had defaulted on a number of debts,and currently had judgments in the amount of $30,000 against him.
The credit arrangement for the purchase of the boat by Jones must disclose only the amount borrowed,the terms of loan,the monthly payments,and the true interest rate.

Answer 3

False

Question 4

Simple agreed to purchase a quantity of bird feed for his canary from a local pet shop.The shopkeeper agreed to weigh the feed,and have it in a package for Simple when he returned in one hour.The shopkeeper weighed the feed,and wrote the weight,price,and Simple's name on the package.Before Simple returned,the package was stolen from the shop.
The title to the goods had not passed,because Simple had not paid for them.

Question 5

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
Big Harry is entitled to use reasonable force to collect the money,provided that the force is used only against the debtor,Slippery Sam.

Question 6

Simple agreed to purchase a quantity of bird feed for his canary from a local pet shop.The shopkeeper agreed to weigh the feed,and have it in a package for Simple when he returned in one hour.The shopkeeper weighed the feed,and wrote the weight,price,and Simple's name on the package.Before Simple returned,the package was stolen from the shop.
The title to the goods passed when the agreement was made,and the goods belonged to Simple when they were stolen.

Question 7

B.Jones entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000.The purchase was to be on credit,subject to a favourable credit report on Jones.Marina Boats checked with Credit Reporting Company,and was informed that a B.Jones had defaulted on a number of debts,and currently had judgments in the amount of $30,000 against him.
Persons using credit who have reason to believe that the files of a credit-reporting agency contain inaccurate information may have their files corrected,or include their own explanatory notes concerning the information.

Question 8

Smith visited the showroom of the Cold Company,and verbally ordered a $800 refrigerator.The Cold Company verbally accepted the order,and later (the next day)sent Smith a duplicate purchase order for the appliance,along with a request that he sign and return one copy.Smith did not sign the order,and when the appliance was delivered,refused to take delivery.ABC sued Smith for breach of contract.
The purchase order sent by ABC to Smith would defeat Smith's defence based upon the writing requirements in the Sale of Goods Act.

Question 9

Smith visited the showroom of the Cold Company,and verbally ordered a $800 refrigerator.The Cold Company verbally accepted the order,and later (the next day)sent Smith a duplicate purchase order for the appliance,along with a request that he sign and return one copy.Smith did not sign the order,and when the appliance was delivered,refused to take delivery.ABC sued Smith for breach of contract.
In its suit against Smith,the only remedy available to the ABC Company would be specific performance of the contract.

Question 10

B.Jones entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000.The purchase was to be on credit,subject to a favourable credit report on Jones.Marina Boats checked with Credit Reporting Company,and was informed that a B.Jones had defaulted on a number of debts,and currently had judgments in the amount of $30,000 against him.
If the information in the credit report is accurate,Marina Boats may deny credit to Jones on the strength of the report.

Question 11

B.Jones entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000.The purchase was to be on credit,subject to a favourable credit report on Jones.Marina Boats checked with Credit Reporting Company,and was informed that a B.Jones had defaulted on a number of debts,and currently had judgments in the amount of $30,000 against him.
If credit is denied because of an unfavourable credit report,in most jurisdictions,the seller must inform the buyer of the reason for the refusal of credit.

Question 12

B.Jones entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000.The purchase was to be on credit,subject to a favourable credit report on Jones.Marina Boats checked with Credit Reporting Company,and was informed that a B.Jones had defaulted on a number of debts,and currently had judgments in the amount of $30,000 against him.
Marina Boats would be classed as an itinerant seller under the legislation of most provinces,even though it sells only from a fixed place of business.It must,therefore,be registered as such.

Question 13

Baker agreed to purchase a set of books on display in Black's Book Store.The price for the set was $300,and Baker gave Black $150 to "bind the bargain." Black delivered the books to Baker's home the next day,but Baker refused delivery,as he had found a similar set in another shop at a slightly lower price.
Black is entitled to keep Baker's $150,as it was a deposit.

Question 14

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
A collection agency may use any form it wishes as a demand for payment,provided that it does not use an official court form.

Question 15

Smith visited the showroom of the Cold Company,and verbally ordered a $800 refrigerator.The Cold Company verbally accepted the order,and later (the next day)sent Smith a duplicate purchase order for the appliance,along with a request that he sign and return one copy.Smith did not sign the order,and when the appliance was delivered,refused to take delivery.ABC sued Smith for breach of contract.
Smith could raise the requirement of writing in the Sale of Goods Act as a defence.

Question 16

Baker agreed to purchase a set of books on display in Black's Book Store.The price for the set was $300,and Baker gave Black $150 to "bind the bargain." Black delivered the books to Baker's home the next day,but Baker refused delivery,as he had found a similar set in another shop at a slightly lower price.
Baker is obliged to take delivery,as the title passed when the contract was made.

Question 17

Smith visited the showroom of the Cold Company,and verbally ordered a $800 refrigerator.The Cold Company verbally accepted the order,and later (the next day)sent Smith a duplicate purchase order for the appliance,along with a request that he sign and return one copy.Smith did not sign the order,and when the appliance was delivered,refused to take delivery.ABC sued Smith for breach of contract.
If Smith accepted delivery of the refrigerator,and a week later refused to pay,ABC Company would not require a signed purchase order to enforce the contract.

Question 18

Simple agreed to purchase a quantity of bird feed for his canary from a local pet shop.The shopkeeper agreed to weigh the feed,and have it in a package for Simple when he returned in one hour.The shopkeeper weighed the feed,and wrote the weight,price,and Simple's name on the package.Before Simple returned,the package was stolen from the shop.
The title to the goods had not passed because the shopkeeper had not notified Simple that the goods were weighed,and in a deliverable state.

Question 19

Baker agreed to purchase a set of books on display in Black's Book Store.The price for the set was $300,and Baker gave Black $150 to "bind the bargain." Black delivered the books to Baker's home the next day,but Baker refused delivery,as he had found a similar set in another shop at a slightly lower price.
Black may retain the $150,and sue Baker for the remainder of the purchase price,if he is prepared at all times to deliver the goods to Baker.

Question 20

B.Jones entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000.The purchase was to be on credit,subject to a favourable credit report on Jones.Marina Boats checked with Credit Reporting Company,and was informed that a B.Jones had defaulted on a number of debts,and currently had judgments in the amount of $30,000 against him.
In most jurisdictions,credit-reporting legislation requires either the permission of the debtor,or notice to the debtor of an intention to obtain a consumer credit report on the debtor.

Question 21

While delivery of goods is a condition and payment is merely a warranty under the Sale of Goods Act,a seller is under no obligation to deliver goods unless payment has been made,or credit terms have been granted.

Question 22

Donald bought a new car,after looking it over carefully and taking it for a test drive.Due to a defect in the manufacture of the steel from which the back axle was made,the axle collapsed the next day when Donald was driving to work.He was unhurt but the car is a write-off.The loss is his since he had the opportunity to examine the car before buying.

Question 23

Jill agrees to sell the quilt she is making to Claire when it is finished.This is not a contract for the sale of goods until the quilt is completed.

Question 24

The process of business transactions has evolved over centuries.The evolution of business has resulted in the need for a system to govern it and to provide protection for both sellers and buyers.The Sale of Goods Act is the result of that need,and governs all business transactions,for both monetary and non-monetary reward.

Question 25

The Strong Arm Collection Agency must be licensed in the province in which it operates,and if it repeatedly uses methods of collection prohibited by the statute,its license to operate may be revoked.

Question 26

Denuta builds a house on Evan's property.Subsequently,much of the work is found to be substandard,and the municipal building inspector refuses to issue an occupancy permit to Evan.With Evan having relied on Denuta's skill and judgment,Denuta is in breach,under the act,of implied condition of fitness for use intended.

Question 27

Katz purchases a piano from LeBlanc's Music Store.Some weeks later a representative from a finance company approaches Katz and claims a secured interest in his piano.LeBlanc is in breach of implied warranty of quiet possession under the Sale of Goods Act.

Question 28

Marvin sells his expensive watch to Sylvester in return for Sylvester's almost new mountain bike.The watch stops working immediately and the jeweller tells Sylvester that it is unmendable.Under the Sale of Goods Act,Sylvester is entitled to the return of his bike provided he gives Marvin back the watch.

Question 29

Smith and Brown Ltd.has a standard form contract that contains a clause that says that all warranties and conditions,implied or expressed,at Common Law,under statute or by custom,are excluded from the contract.The Sale of Goods Act allows the company to do this.

Question 30

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.

Question 31

A doctor ordered 20 boxes of tongue depressors by mail.The supplier had them in stock and sent them off by return mail,but they were never delivered to the doctor's office although the parcel was correctly addressed.They were the property of the doctor when they were lost.

Question 32

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
If Slippery Sam does not pay,Big Harry is free to inform Sam's employer that Sam is a delinquent debtor.

Question 33

You hear someone in your office talking about the necessity of "home-grown" laws to properly protect Canadians."You can't just adopt another country's laws",your colleague says."You have to tailor them carefully to the Canadian scene or they will not work." The Sale of Goods Act is a good example of what that person is talking about.

Question 34

Antonella is slow to pay the invoice on the computer printer delivered to her.Nothing is mentioned in the contract about payment except that it is due on receipt of the invoice.Antonella has breached a warranty.

Question 35

Since any sale of goods may give rise to a dispute,the Sale of Goods Act provides remedies to the parties involved in any given transaction and helps to alleviate conflict.Remedies for the buyer include liens action for price,damages,and resale.Remedies for the seller include rescission,specific performance,and damages.

Question 36

Anne telephones the stationery store to purchase an electric pencil sharpener for her office for $65.This contract for the sale of goods is unenforceable if Anne changes her mind because it is not in writing.

Question 37

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
If Slippery Sam does not pay the debt,Big Harry is entitled to demand payment of the debt from other members of Sam's immediate family.

Question 38

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
Big Harry is not entitled to use any physical threats,force,or pressure against Slippery Sam.

Question 39

"What does caveat emptor mean,Daddy?" said little Shirley.Unwilling to admit he was not sure,Shirley's Daddy said,"It means Let the seller beware"."That's not what this law book says," said little Shirley,and she was right.

Question 40

"Title and the right of ownership have the same meaning in law," says Vivienne.She is right.

Question 41

Mike visits an electronics store having seen an advertisement of a computer at a very attractive price.The salesperson shows him the computer willingly and describes the attributes.With a whisper,the salesperson says "I'm not supposed to point this out,because the manager would kill me,but even though this computer is cheaper,its a real dog.No quality.This computer over here,while it costs more,is much more value for money." Mike is impressed at the forthrightness and the fact that the employee is taking a risk to help him make a good choice He buys the computer.The following week he notices advertisements for the model of computer he has just purchased,at prices between 20 percent and 30 percent below the price he paid.
The store is in violation of the Business Practices Act of the province where the act took place.

Question 42

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' liability to customers will be either in statute or Common Law.

Question 43

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.
Sale of Goods Act warranties and conditions are made unavailable to manufacturers by consumer protection legislation.

Question 44

John purchased a compact car from Ripuoff 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 Ripuof'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.
John may invoke the warranty for repair of the defects in the car.

Question 45

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 has substituted the house brand for her favourite brand but is entitled to pay $4.59.

Question 46

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

Question 47

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.
A violation of the Competition Act has occurred.

Question 48

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

Question 49

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.
A consumer credit-reporting agency need inform debtors only of the names of creditors using the service but need not reveal the information it has collected.

Question 50

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.
Debt is a situation that arises in many consumer-retailer transactions.However,in some cases unpaid debt becomes a serious problem,forcing some retailers to use collection agencies to gather monies owed to them by consumers.As a result,the Consumer Protection Act includes specific provisions to govern these agencies.Although it requires them to be licensed,it imposes very few restrictions on the manner in which the agencies collect the money.

Question 51

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.

Question 52

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 enforce the performance warranties against the seller only by including her father in the action.

Question 53

Mike visits an electronics store having seen an advertisement of a computer at a very attractive price.The salesperson shows him the computer willingly and describes the attributes.With a whisper,the salesperson says "I'm not supposed to point this out,because the manager would kill me,but even though this computer is cheaper,its a real dog.No quality.This computer over here,while it costs more,is much more value for money." Mike is impressed at the forthrightness and the fact that the employee is taking a risk to help him make a good choice He buys the computer.The following week he notices advertisements for the model of computer he has just purchased,at prices between 20 percent and 30 percent below the price he paid.
The store,by virtue of the actions of its employee,is in violation of the federal Competition Act.

Question 54

John purchased a compact car from Ripuoff 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 Ripuof'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.
The car dealership is subject to a statutory warranty that the car will be durable for a reasonable period of time.

Question 55

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.
Eli is a door-to-door salesman with Cleanco,a household cleaning manufacturer.James was approached by Eli and agreed to buy many items.James discussed his purchase with a friend.During the discussion James learned of the poor quality inherent in Cleanco's goods.James's friend also informed him that the provincial Consumer Protection legislation did contain a "cooling-off" period clause under which he can repudiate the contract without liability.James contacted Eli at his office and informed him of his decision to return the goods.Eli informed him that he is entitled to do so only when a product is bought in a store and not from a travelling salesperson.Eli is mistaken.

Question 56

Mike visits an electronics store having seen an advertisement of a computer at a very attractive price.The salesperson shows him the computer willingly and describes the attributes.With a whisper,the salesperson says "I'm not supposed to point this out,because the manager would kill me,but even though this computer is cheaper,its a real dog.No quality.This computer over here,while it costs more,is much more value for money." Mike is impressed at the forthrightness and the fact that the employee is taking a risk to help him make a good choice He buys the computer.The following week he notices advertisements for the model of computer he has just purchased,at prices between 20 percent and 30 percent below the price he paid.
Not only may the store face a fine,but Mike may rescind the transaction.

Question 57

John purchased a compact car from Ripuoff 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 Ripuof'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.
All commissions of unfair business practices entitle consumers to receive exemplary damages or to rescind the agreement entered into.

Question 58

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.

Question 59

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.
A seller of goods may be found to be in breach of the Business Practices Act if it charges too much for its goods.

Question 60

John purchased a compact car from Ripuoff 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 Ripuof'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.

Question 61

Consumers are protected against deficient product performance by legislation that

A)qualifies or limits Sale of Goods Act implied conditions and warranties in respect of consumer purchases.
B)imposes heavy burdens on manufacturers,sellers,and consumers who fail to provide products capable of meeting advertised performance claims.
C)defines consumer warranties to ensure protections are afforded to the appropriate class of persons.
D)expands sellers' obligations with respect to deficient consumer goods.
E)All of these.

Question 62

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.He could also 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."
Because electronic retailing (using the Internet)is radically different from traditional retailing,existing case and statute law do not apply to Web-based businesses.

Question 63

Sandra visited her usual hair salon and had her long hair conditioned and styled.While there she told her hair stylist that she would like to purchase a shampoo and conditioner for her hair that would keep it moisturized and manageable at home.The stylist recommended several products and described the attributes of each one.Sandra chose Hair So Soft from among the recommended products,particularly because of its fruity perfume.When Sandra used the products at home her hair became dry and brittle and began to fall out.

A)Sandra can repudiate the contract by returning the products for a return of her money.
B)Sandra is entitled only to claim damages for breach of contract.
C)The implied condition that the products will be reasonably fit for their intended use does not apply in this case.
D)Sandra examined the products before purchasing one;therefore,caveat emptor applies.
E)a and c.

Question 64

Consumer information legislation protects consumers by

A)prohibiting false or misleading statements and advertising.
B)providing for standards.
C)requiring elaborate testing procedures for certain consumer goods.
D)a and c.
E)a and b.

Question 65

Itinerant sellers

A)sell door to door.
B)pose problems in maintaining fair competition among merchants.
C)pose problems because of their short-term employment.
D)All of these.
E)None of these.

Question 66

The Hazardous Products Act

A)prohibits the manufacture of any product that has the potential to cause injury.
B)controls the possession and application of drug and food products.
C)requires certain products to carry a written warning including a depiction of the type of inherent danger.
D)All of these.
E)a and c only.

Question 67

PlastiCo.contracted to buy 10,000 gallons of a chemical from Natural Chemicals Ltd.The chemical still had to be refined at the time the contract was made.Once it was refined,Natural had it pumped into 500 gallon drums,and loaded them onto a truck owned by Heavy Haulage Inc. ,a common carrier.
Suppose PlastiCo.is petitioned into bankruptcy and Natural hears about this the day after Heavy Haulage picks up the barrels.Which of the following statements is true?

A)Since only the buyer may normally recover goods from a carrier,Natural cannot intercept the shipment and repossess it,so Natural may never receive payment for it if there are many creditors with a better claim to PlastiCo's assets.
B)If a buyer is bankrupt before delivery of goods,it cannot take title to them so title will remain with Natural and it can repossess them.
C)If Natural and PlastiCo.had inserted a clause into the contract that said that title would remain with Natural until the goods were paid for in full by PlastiCo. ,it would not be effective because it would conflict with the Sale of Goods Act.
D)a and c.
E)b and c.

Question 68

Farmer Brown bought 4 kilos of onion seeds from Greene's Nurseries while she was waiting for Organic to load the manure.The packages were labelled "Greene's Rose Red Onions".Unfortunately,they were really "Greene's Marigold Yellow Onions" seeds but Farmer Brown could not tell that until they had grown,since the two kinds of seeds are identical to the naked eye.Rose Reds bring a much higher return because they are very popular with those who buy organically grown vegetables and are willing to pay high prices for them.

A)The rule of "caveat emptor" applies here and there is nothing that Farmer Brown can do.
B)Since the seeds did not correspond with their description,Farmer Brown is entitled to and will claim damages,since there is no point in her treating the contract as being at an end.
C)Farmer Brown is entitled to damages but these cannot include her lost profits.
D)Since Farmer Brown bought the seeds under their trade name,she is not entitled to the remedies under the Sale of Goods Act.
E)b and c.

Question 69

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.He could also 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.

Question 70

Consumer protection in respect of credit aims to

A)assist consumers who undertake substantial liability for large purchases such as homes.
B)assist lenders offering innovative financing to facilitate consumer credit purchases.
C)ensure credit rates remain stable.
D)ensure clear disclosure of credit charges.
E)c and d.

Question 71

In Canada,a contract for the sale of goods valued at $1,000 would have to be in writing,unless

A)the buyer accepts part of the goods sold.
B)the buyer makes a part payment of the contract price.
C)the buyer gives something "in earnest" to bind the contract.
D)the contract takes place in British Columbia.
E)a or b or c or d.

Question 72

Consumer protection laws have taken the following approaches:

A)disclosure of information.
B)expanded consumer rights.
C)minimum standards for safety,quality and performance.
D)registration.
E)All of these.

Question 73

Common law remedies available to consumers

A)arise only after injury occurs.
B)arise from the obligations of sellers and manufacturers under the Sale of Goods Act.
C)arise where the seller and manufacturer had a duty not to injure.
D)a and c only.
E)None of these.

Question 74

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.He could also 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."
A collection agency may not telephone a debtor's employer on any pretext.

Question 75

Smith visited the showroom of the Appliance Company and orally ordered a $300 refrigerator.The Company verbally accepted the order,and later (the next day)sent Smith a duplicate purchase order for the appliance along with a request that he sign and return one copy.Smith did not sign the order,and when the appliance was delivered,refused to take delivery.ABC sued Smith for breach of contract.

A)Smith could raise the Sale of Goods Act as a defence.
B)The purchase order sent by ABC to Smith would defeat Smith's defence based upon the Sale of Goods Act.
C)If Smith accepted delivery of the refrigerator and a week later refused to pay,ABC Company would not require a signed purchase order to enforce the contract.
D)In its suit against Smith the only remedy available to the ABC Company would be specific performance of the contract.
E)a and c.

Question 76

PlastiCo.contracted to buy 10,000 gallons of a chemical from Natural Chemicals Ltd.The chemical still had to be refined at the time the contract was made.Once it was refined,Natural had it pumped into 500 gallon drums,and loaded them onto a truck owned by Heavy Haulage Inc. ,a common carrier.
Suppose PlastiCo.was not in bankruptcy but was only insolvent.Prior to its insolvency,it had realized that the chemical was going to be surplus for it and had sold its rights to the shipment to Tiny Co.and had instructed Heavy Haulage to deliver it to Tiny.By the time PlastiCo.contacts Heavy to stop the delivery in transitu,Heavy has already delivered the barrels to Tiny.

A)Although Tiny had no notice of the stoppage in transitu and it had bought the shipment in good faith for a reasonable price,nevertheless Tiny has no rights to the barrels since PlastiCo.would have had no rights to them;therefore,so Tiny cannot keep them unless it pays Natural.It can then recover the money it paid already to PlastiCo.
B)Since Tiny bought the rights to the barrels in good faith at their proper value,and PlastiCo.had no notice of the stoppage in transitu,Tiny has the right to keep them and Natural must look to PlastiCo.for payment of the purchase price.
C)Natural is entitled to place a lien on the barrels,preventing Tiny from using their contents until Natural is paid by PlastiCo.
D)a and c.
E)b and c.

Question 77

PlastiCo.contracted to buy 10,000 gallons of a chemical from Natural Chemicals Ltd.The chemical still had to be refined at the time the contract was made.Once it was refined,Natural had it pumped into 500 gallon drums,and loaded them onto a truck owned by Heavy Haulage Inc. ,a common carrier.
The truck pulls out of Natural's yard,and it is struck by a falling boulder on the mountain road nearby and goes over the cliff.Almost all of the barrels are damaged and the chemicals leak into the ground.

A)Since the loss of the chemicals was due to an act of God,the two parties will split the loss between them.
B)The loss will be Natural's since the barrels were not yet delivered to PlastiCo.
C)Since the chemical was unconditionally appropriated to the contract when it was loaded onto Heavy's truck,the loss is PlastiCo's.
D)Title to the chemicals was PlastiCo's from the moment the contract was formed and so PlastiCo.must bear the loss.
E)Since Natural had not yet notified PlastiCo.that the chemicals were being delivered,the risk of loss remains with the seller,Natural.

Question 78

Farmer Brown bought a truckload of processed goat manure at $1 per kilo from Organic Fertilizers Ltd.for use on her organic vegetable farm.She could not pay for it until it was ascertained how many kilos her truck would hold,so,while it was being put in her truck,she went to make some other purchases in the town.The owner of Organic wrote up the bill once the truck was full and left it at the counter with the clerk.Before Farmer Brown got back,the truck was hot-wired and stolen with the manure.The truck was found the next day,but the manure was never seen again.

A)The loss is Farmer Brown's because title passed once the contract was formed.
B)The loss is Farmer Brown's because title passed once the manure was on her truck.
C)The loss is Farmer Brown's because title passed once the owner of Organic had established the price,since there was nothing left for him to do.
D)The loss is Organic's because title did not pass until Farmer Brown was notified that the manure had been weighed.
E)The loss is Organic's because,until Farmer Brown pays for the manure,title does not pass to her.

Question 79

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.He could also 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.

Question 80

Deceptive labelling is prohibited under

A)the Food and Drugs Act.
B)the Sale of Goods Act.
C)the Hazardous Products Act.
D)various penal statutes in the provinces.
E)a,b,and d.