Question 1

A cheque made payable "after the building is completed" can qualify as a negotiable instrument.

Accepted Answer

A negotiable instrument must have a fixed date or be payable on demand; a condition like "after the building is completed" introduces uncertainty about the time of payment, making it non-negotiable.

Question 2

There is a cooling-off period in all consumer sales transactions where the purchaser of goods has a period of time in which to change her mind.

Accepted Answer

The availability of a cooling-off period depends on the jurisdiction and specific laws governing consumer sales transactions, and it is not universally applied to all consumer sales. Some transactions may have a cooling-off period, while others do not.

Question 3

If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

Accepted Answer

Green, as a holder in due course, has rights superior to those of Jones because Green takes the note free from many defenses that could be asserted against Jones, assuming Green meets the requirements for a holder in due course under the Uniform Commercial Code.

Question 4

What steps have been taken provincially to protect a purchaser with respect to the quality of the goods that are purchased?

Accepted Answer

The answer of What steps have been taken provincially to...

Question 5

A holder in due course is in the same position as the person from whom a negotiable instrument was received.

Accepted Answer

A holder in due course holds the instrument free from many defenses and claims that could be asserted against the original party, thus often in a better position than the person from whom the negotiable instrument was received.

Question 6

What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.

Accepted Answer

The answer of What is a bill of lading? Explain...

Question 7

A bill of exchange is an order by one person to another to pay money to a third.

Accepted Answer

A bill of exchange is indeed a financial document that orders a party to pay a specific sum of money to a third party, as per the instructions of the person who issues the document.

Question 8

The common law doctrine of unconscionability in contract law can also be applied to consumer situations.

Accepted Answer

The doctrine of unconscionability is applied in contract law to prevent the enforcement of contracts that are grossly unfair or oppressive, and this principle is often used in consumer situations to protect consumers from unfair terms in contracts they enter into with businesses.

Question 9

When goods are sold, who normally bears the risk?

Accepted Answer

The answer of When goods are sold, who normally bears...

Question 10

Jones walked into Sam's TV shop and said, pointing to a particular television, "I'll take that one." They wrote up the deal, and Jones 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 Jones walked into Sam's TV shop and...

Question 11

Distinguish among a C.I.F. contract, an F.O.B. contract, and a C.O.D. contract.

Accepted Answer

The answer of Distinguish among a C.I.F. contract, an F.O.B....

Question 12

Privity of contract does not apply to consumer transactions.

Accepted Answer

Privity of contract applies to consumer transactions, meaning that only the parties involved in the contract have the rights and obligations under it. However, consumer protection laws may provide certain rights to consumers even if they are not directly a party to the contract.

Question 13

What's the main purpose of the Sale of Goods Act?

Accepted Answer

The answer of What's the main purpose of the Sale...

Question 14

The Gift Card Regulation stipulates that gift cards are allowed to have expiry dates.

Accepted Answer

The answer of The Gift Card Regulation stipulates that gift...

Question 15

Unconscionable transactions statutes apply to any transaction where the price paid is not fair or reasonable.

Accepted Answer

Unconscionable transactions statutes typically apply to situations where there is a significant imbalance in bargaining power, and the terms are excessively unfair or oppressive, not merely when the price is not fair or reasonable.

Question 16

"The Sale of Goods Act is another example of consumer protection legislation." Discuss the accuracy of this statement.

Accepted Answer

The answer of "The Sale of Goods Act is another...

Question 17

For an instrument to be negotiable, it must be an unconditional promise to pay a specific amount at some future date or on demand.

Accepted Answer

Negotiability of an instrument, such as a promissory note or check, requires it to contain an unconditional promise or order to pay a fixed amount of money either on demand or at a definite time.

Question 18

Distinguish between a sale and an agreement to sell.

Accepted Answer

The answer of Distinguish between a sale and an agreement...

Question 19

The key issues involving gift cards relate to expiry dates and fees.

Accepted Answer

Gift cards often come with expiry dates and may have various fees associated with them, such as activation, transaction, or inactivity fees, which are key issues for consumers.

Question 20

Some jurisdictions allow civil suits against abusive debt collectors.

Accepted Answer

Many jurisdictions have laws that allow individuals to file civil lawsuits against debt collectors who engage in abusive, deceptive, or unfair collection practices, such as the Fair Debt Collection Practices Act (FDCPA) in the United States.

Quiz 16: Sales and Consumer Protection