Question 1

EcoDesign Inc.(Eco)purchased 200 weeping caragana trees for spring planting from Abbot Garden Centre Ltd.Two weeks later,planting was complete and payment forwarded to Abbot.Two months later,Eco was served with a claim issued by Misty Tree Farms Ltd.,alleging non-payment for the goods by Abbot Garden Centre and naming Eco as a third party to the claim.How was the Sale of Goods Act violated in this instance?

Accepted Answer

D

Question 2

A judge has found that Clear View Windows Inc.is liable to pay damages to a client for breach of one of its implied obligations under the Sale of Goods Act.Which of the following statements best describes the nature of the implied term breached by Clear View?

Accepted Answer

The term breached by Clear View is an implied warranty, which is an implied term that guarantees that the goods sold will be of reasonable quality and fit for their intended purpose.

Question 3

Which of the following is a criticism of the strict application of the common law maxim,caveat emptor?

Accepted Answer

The criticism of the strict application of the common law maxim "caveat emptor" (let the buyer beware) is that it often produces unfair results, as it places the burden on the buyer to discover defects or issues with a product, potentially leading to situations where buyers are left without recourse if they purchase defective goods.

Question 4

Which of the following is recognized as a term that cannot be easily classified under the Sale of Goods Act?

Accepted Answer

An innominate term is a term that cannot be easily classified as a condition or a warranty.

Question 5

Which of the following prohibits the defence of privity of contract?

Accepted Answer

Provincial consumer protection legislation often includes provisions that limit or prohibit the defense of privity of contract in consumer transactions. This allows consumers to pursue claims related to goods or services even if they were not the direct party to the contract with the supplier or manufacturer.

Question 6

Goodhealth Farms Inc.was sued by a customer,and the court has now ordered that the plaintiff is entitled to a reduction in the price initially agreed to in the contract.What is the most likely reason for the court's decision?

Accepted Answer

A reduction in price typically results from a breach of warranty rather than a breach of condition. Breaches of conditions usually entitle the aggrieved party to terminate the contract, not just a price reduction.

Question 7

Which of the following roughly approximates the meaning of the term caveat emptor?

Accepted Answer

Caveat emptor is a Latin term that warns buyers that they are solely responsible for evaluating the quality and condition of an item they intend to purchase. In other words, it means "let the buyer beware."

Question 8

Which of the following transactions would NOT fall under the Sale of Goods Act?

Accepted Answer

The Sale of Goods Act typically applies to transactions involving the sale of goods for money. A barter transaction, such as exchanging a car for a motorcycle, does not involve money and therefore does not fall under the Sale of Goods Act.

Question 9

What is the role placed by law on the purchaser of a product with respect to securing the entitlement to a common law remedy?

Accepted Answer

The purchaser must ensure that product expectations are part of the contract to secure entitlement to a common law remedy if those expectations are not met.

Question 10

Marta went to the local office supply store to buy a few packages of grey linen bond paper.The clerk showed Marta laminated covered samples but refused to let her open the wrapped packages for comparison purposes.She made the purchase but was asked by her office manager to return the paper because it was too thin.According to the Sale of Goods Act,why will the merchant likely have to accept the return of the product?

Accepted Answer

The answer of Marta went to the local office supply...

Question 11

What is the name given to goods that are identified and agreed on at the time a contract of sale is made?

Accepted Answer

Specific goods are those that are identified and agreed on at the time a contract of sale is made, such as a specific car, book, or piece of furniture.

Question 12

Which of the following would most strongly influence the remedies available to a consumer under consumer protection legislation?

Accepted Answer

The answer of Which of the following would most strongly...

Question 13

Which of the following would be essential to determining a remedy with respect to the breach of a term under the sale of goods legislation?

Accepted Answer

The classification of the term is essential to determining a remedy with respect to the breach of a term under the sale of goods legislation. This is because different types of terms (e.g. conditions, warranties) have different levels of legal importance and remedies available for their breach.

Question 14

Which of the following strongly supported the creation of principles set out in a specialized branch of contract law intended to provide a measure of protection for the purchaser of goods?

Accepted Answer

The doctrine of caveat emptor puts the burden on the purchaser to examine goods before buying them, and provides no protection if the goods turn out to be defective. The unfair results of this strict application strongly supported the creation of principles set out in a specialized branch of contract law intended to provide a measure of protection for the purchaser of goods.

Question 15

Which of the following terms describes a minor term in a contract for the sale of goods?

Accepted Answer

A warranty is a minor term in a contract, which, if breached, allows for a claim for damages but does not entitle the aggrieved party to terminate the contract.

Question 16

Why would a buyer be relieved of the implied statutory requirement to make its intended purpose of purchasing goods known to the seller of those goods?

Accepted Answer

If the goods will be used in their ordinary purpose, then it is not necessary for the buyer to explicitly inform the seller of their intended purpose. This is because it is assumed that the seller is aware of the ordinary purpose of the goods they are selling.

Question 17

Which of the following is an implied term when goods are sold “by description”?

Accepted Answer

The implied term when goods are sold “by description” is that the goods will match the seller’s description.

Question 18

In the case of Chalmers Suspensions International Ltd.v.B&B Automation Equipment Inc.,2008 CanLII 15767 (ON S.C.),the court determined,among other things,that the plaintiff's rejection of equipment and its claim for return of payments was justified.Which of the following most likely formed the basis for the court's finding?

Accepted Answer

The breach of an implied condition that went to the root of the contract is the most likely basis for the court's finding because it is a fundamental breach that goes to the heart of the contract and renders the contract voidable.

Question 19

Which of the following is relevant to a determination of what is reasonable with respect to the nature,intended purpose,and price paid for goods under consumer protection legislation?

Accepted Answer

The answer of Which of the following is relevant to...

Question 20

Alison advised the sales manager at SpudsRUs Ltd.that she had rejected the shipment of potatoes received from Spuds that morning.As this was the second consecutive shipment from Spuds contaminated with blight,Alison also advised Spuds she was cancelling the contract.Why is Alison able to do so?

Accepted Answer

Alison is able to cancel the contract because of the right of repudiation. This right allows a party to cancel a contract if the other party has committed a fundamental breach of contract. In this case, the contaminated shipments from SpudsRUs Ltd. constituted a fundamental breach and therefore allowed Alison to cancel the contract.

Quiz 23: The Sale of Goods