Question 1

The following events occurred before the goods or parts of the goods were lost or destroyed.In which case would the buyer suffer the loss?

Accepted Answer

In this case, Yates had already contracted for the desk and agreed to pay and pick it up the next day. If the desk was lost or destroyed, it would be considered the buyer's loss as they had already taken on the risk of ownership. In the other cases, the goods were not yet in deliverable state or the price had not been determined, so the seller would be responsible for any loss or damage to the goods.

Question 2

In which of the following will the title to the goods pass to the buyer at the time of contract?

Accepted Answer

The answer of In which of the following will the...

Question 3

The following events occurred before the goods or parts of the goods were destroyed by fire.In which case would the buyer suffer the loss?

Accepted Answer

In case C, Manchesco had chosen and contracted for specific chairs, indicating that the goods were identified and agreed upon, which typically means the risk of loss passes to the buyer upon the formation of the contract, even though he had not yet paid for or taken possession of them.

Question 4

When a contract of purchase is entered into with regard to specific goods that are to be delivered some time in the future,title always transfers at the point of delivery.

Accepted Answer

Title transfers at the point of delivery only if it is stated in the contract or if the parties intend for it to be transferred at that time. Otherwise, title may transfer at a different point in time, such as when payment is made or when the goods are manufactured.

Question 5

John has been working and saving his money; he wants to buy a car on his 25th birthday.Which of the following is false?

Accepted Answer

There is no implied term that payment must be made by certified cheque. The form of payment is usually left to the discretion of the parties involved in the transaction.

Question 6

Joe bought a TV "on approval," took it home,and installed it as part of a built-in stereo wall in his renovated recreation room.He discovered,however,that the TV was too small,extracted it from the wall,and took it back to the seller,saying he was not happy with it.The seller asked about the minor scratches on the finish and Joe explained that it had been built into the wall,and the trouble he had experienced to get the TV out again.Has title transferred? Explain.

Accepted Answer

The answer of Joe bought a TV "on approval," took...

Question 7

The Sale of Goods Act adds a number of implied terms to a sale-of-goods transaction.Which one of the following statements is not an implied term under the Sale of Goods Act?

Accepted Answer

The promise of satisfaction or the right to get money back is not an implied term under the Sale of Goods Act. This is a contractual agreement that may be negotiated between the buyer and the seller.

Question 8

If the contract doesn't say who bears the loss if an item is lost or stolen,the Sale of Goods Act says risk goes with title.If the contract doesn't say when the title will pass,the Sale of Goods Act implies when it will pass.In which of the following will the statute imply that title will pass to the buyer at the time of the contract?

Accepted Answer

The answer of If the contract doesn't say who bears...

Question 9

With FOB contracts,title and risk always transfer at the seller's place of business.

Accepted Answer

In FOB (Free On Board) contracts, the title and risk transfer to the buyer once the goods are loaded onto the vessel at the port of shipment, not at the seller's place of business.

Question 10

Which of the following statements is correct with respect to a contract for the purchase of goods?

Accepted Answer

A breach of a condition in a contract for the sale of goods allows the non-breaching party to treat the contract as repudiated, meaning they are released from their obligations under the contract. This contrasts with a breach of warranty, which does not terminate the contract but may give rise to a claim for damages.

Question 11

A warranty under the Sale of Goods Act is a contract term the breach of which will allow the victim of the breach to refuse to go through with his or her side of the agreement.

Accepted Answer

A warranty under the Sale of Goods Act is a guarantee or promise made by the seller regarding the quality, performance, or characteristics of the goods being sold. Breach of a warranty typically gives the buyer a right to claim damages or compensation, but it does not generally allow them to refuse to fulfill their contractual obligations. However, a breach of a condition (a more serious contractual term) under the Act would allow the buyer to refuse to accept the goods and/or terminate the contract.

Question 12

Sam went to Joe's garden shop and agreed to purchase a particular bin of bark mulch.The seller,Joe,agreed and said that he would weigh it,figure out the price,and deliver it tomorrow.In the meantime,who has title to the bark mulch?

Accepted Answer

The answer of Sam went to Joe's garden shop and...

Question 13

Alf bought a car from Mr.Wojchu for $10 000.Shortly afterward,a bailiff,acting for an unpaid conditional seller,seized the car.The conditional seller had properly registered his claim in time.Alf wants to sue Mr.Wojchu.Which of the following correctly sets out his legal position?

Accepted Answer

EA) Alf has a valid claim because Mr. Wojchu sold him a car without having clear ownership, failing to deliver good title. E) Alf also bears responsibility because it was his duty to ensure the title was clear before purchasing the vehicle, and he failed to do so.

Question 14

If you buy a toaster from a second-hand dealer of small appliances,which of the following is true?

Accepted Answer

The Sale of Goods Act implies that the seller has the right to sell the goods, meaning they have good title.

Question 15

Carol went to the mall to purchase a cellphone.After discussing the features of several models with the vendor,she purchased one that suited her requirements.However,when she tried to use it,she found it would not work on any of the available networks.Which of the following implied term with respect to title under the Sale of Goods Act has been breached by the vendor of the cellphone?

Accepted Answer

The answer of Carol went to the mall to purchase...

Question 16

Distinguish between conditions and warranties in a sale of goods contract.

Accepted Answer

The answer of Distinguish between conditions and warranties in a...

Question 17

Joe left his car at Harry's tire store,asking Harry to put a particular model of tire from his stock onto the vehicle while Joe went to his office in town.During the day,the tires were installed on the car,and Joe returned that evening to pick up the car.At what point did title on those tires transfer?

Accepted Answer

The answer of Joe left his car at Harry's tire...

Question 18

Under the Sale of Goods Act,when no time has been set for the return of goods taken on approval,title passes at the expiration of 48 hours.

Accepted Answer

Under the Sale of Goods Act, when no time has been set for the return of goods taken on approval, title passes when the buyer signifies their approval or acceptance to the seller, or does any act adopting the transaction. If no specific time frame is provided, the title passes when a reasonable time has expired, not necessarily 48 hours.

Question 19

Jones walked into a new car lot,pointed to a specific car,and said,"I'll take that one." Sam,the operator of the car lot,explained that there was a certain amount of pre-delivery preparation that had to take place before the car could be delivered,and that it would be ready for the purchaser two days later.It was agreed that the purchase price would be paid at that time.Explain who bears the risk in the meantime.

Accepted Answer

The answer of Jones walked into a new car lot,pointed...

Question 20

John walked into Sam's TV store and said,pointing to a particular television,"I'll take that one." They wrote up the deal,and John was to return the next day to pay for it and pick it up.Explain who bears the risk in the meantime.

Accepted Answer

The answer of John walked into Sam's TV store and...

Quiz 5: Legislation in the Marketplace