Question 1

A lawyer is discussing a contract between a buyer and seller for the sale of goods that,among other things,establishes evidence of goods being transferred.Which of the following terms would the lawyer most likely use to refer to the document?

Accepted Answer

The document that establishes evidence of goods being transferred is typically a bill of lading. A bill of lading is a legal document that serves as proof of shipment and receipt of goods, and it includes details about the goods being shipped, the parties involved, and the terms of the agreement. The other three options listed (f.o.b. contract, certificate of insurance, c.i.f. contract) are also related to the sale of goods, but they do not specifically refer to the document that establishes evidence of transfer.

Question 2

With respect to consumers,the intent of the Consumer Packaging and Labelling Act (CPLA)would most strongly influence which of the following?

Accepted Answer

The answer of With respect to consumers,the intent of the...

Question 3

With respect to the Sale of Goods Act,a buyer's express assent given before or after appropriation of the goods is made would most strongly influence which of the following?

Accepted Answer

Rule 5 of the Sale of Goods Act deals with unascertained goods and states that the property in the goods passes to the buyer when the goods are unconditionally appropriated to the contract with the buyer's assent.

Question 4

Which of the following would a business law professor most likely identify as being the most important source of standards promoting public confidence in business products and services?

Accepted Answer

The answer of Which of the following would a business...

Question 5

Ariafyn Equestrian Farm ordered a maximum of $1200 worth of oats for delivery by October 30 from Mike,a local farmer.On October 12,Mike stopped at the grain elevator scales to weigh the truckload of oats,which indicated Ariafyn would owe $1293 for the load.Mike was inside the office obtaining the certificate of weight when a passing train derailed,sending a rail car colliding into Mike's truck.In this scenario,which party will have the right to sue the railway company for the loss of the oats?

Accepted Answer

Mike retains the right to sue the railway company because the risk of loss remains with him until the buyer, Ariafyn, is notified and agrees to the price once it is ascertained.

Question 6

With respect to the series of rules contained in the provincial sale of goods legislation that determine when title transfers,which of the following would be considered immaterial?

Accepted Answer

The postponement of time of payment or delivery is not a factor in determining when title transfers, as it simply relates to the timing of the transaction rather than the transfer of ownership. Rules 2, 3, and 5 are all relevant to the transfer of ownership and would be material considerations.

Question 7

With respect to product,which of the following would a business law professor most likely indicate as being the source of an adopted mandatory measure of the standard of care for tort liability?

Accepted Answer

The Canadian Standards Association is a non-profit organization that develops and publishes standards for a wide range of products and services. These standards are often adopted as mandatory measures of the standard of care for tort liability, meaning that a business could be held liable for injuries or damages resulting from their failure to meet these standards. The other options listed do not typically serve as sources for adopted mandatory measures of the standard of care for tort liability.

Question 8

Under the sale of goods legislation,the determination of the normal measure of damages for non-acceptance is synonymous with which of the following?

Accepted Answer

The normal measure of damages for non-acceptance is related to the seller's obligation to mitigate losses by reselling the goods or finding an alternative buyer.

Question 9

In circumstances where the title to goods has transferred to the buyer,sale of goods legislation provides an unpaid seller with a right to a claim that is legally described as which of the following?

Accepted Answer

The sale of goods legislation provides an unpaid seller with the right to take legal action for the price of the goods sold after the title has transferred to the buyer. This claim is known as an "action for price." Choice A (account for profits) refers to a different type of claim where a seller can claim the profits that the buyer has made by reselling the goods. Choice B (breach of contract) is a general term that can refer to a variety of claims arising from a contract, but it is not specific to the situation of an unpaid seller seeking payment for goods already sold. Choice D (stoppage in transit) is a right of an unpaid seller to stop goods that are in transit to a buyer if the buyer is insolvent or otherwise unable to pay for the goods, but it is not applicable once the title has already transferred to the buyer.

Question 10

Which of the following represents the particular type of advertising and collaborative guidelines created by the Competition Bureau and Canadian Standards Association to specifically advise on the need for,among other things,clarity,accuracy,and substantiation of advertising claims?

Accepted Answer

"Environmental Claims: A Guide for Industry and Advertisers" specifically addresses advertising claims and provides guidelines for clarity, accuracy, and substantiation. The other options are guides for packaging and labeling, textile labeling, and precious metals marketing, which are not directly related to advertising claims.

Question 11

Bill C-52 proposed a new system designed to regulate consumer products posing dangers to human health and safety,but with the calling of an election in 2008,the bill failed to be brought into law.Under the ensuing minority government,the bill was re-introduced as Bill C-6.If Bill C-6 is eventually passed and implemented,which of the following represents one of several valid criteria that may be used to measure the effectiveness of the new regulations?

Accepted Answer

The effectiveness of the new regulations can be measured by whether the government devotes adequate resources to enforcement, as proper enforcement is crucial for the regulations to have a real impact on consumer safety.

Question 12

Which of the following remains as both a valid concern to consumers and a valid criticism of the product warnings required under the Hazardous Products Act?

Accepted Answer

The concern is that the market is poorly regulated by manufacturers and importers, which can lead to inadequate product warnings and safety information for consumers.

Question 13

A recent nationwide recall of childrens' hockey sticks imported into Canada was necessitated by confirmation that the sticks were coated with lead paint.Which of the following most likely provided the authority for the recall of this product?

Accepted Answer

The Hazardous Products Act in Canada prohibits the sale of inherently dangerous products. Lead paint is considered an inherently dangerous product and therefore falls under this ban.

Question 14

Why was the civil track process under the Competition Act introduced in 1999?

Accepted Answer

The civil track process under the Competition Act was introduced in 1999 to facilitate the prompt issuance of Competition Bureau orders to stop misleading activities. This process is intended to be faster and more efficient than the criminal track process for dealing with competition law violations.

Option A is incorrect because the civil track process is focused on civil remedies and not criminal convictions. Option B is partially correct but not the best choice because it only pertains to misleading advertising and not other types of competition law violations. Option D is incorrect because the civil track process is not intended to prevent criminal charges for minor infringements, but rather to provide an alternative mechanism for addressing competition law violations.

Question 15

SolarPrime Energy Converters Inc.has delivered a shipment of solar power converters to The Bonivista,the ship nominated by the buyer,scheduled to sail for Holland later in the day.Which of the following exemplifies the type of arrangement made between the parties involved in the sale of these goods?

Accepted Answer

Incoterm 2000 f.o.b. Amsterdam indicates that the seller is responsible for delivering the goods to the ship nominated by the buyer at the port of shipment (Amsterdam).

Question 16

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 goods that are identified and agreed on at the time a contract of sale is made. This means that there is no doubt as to which goods are being sold, and the buyer knows exactly what they are getting. Appropriated goods refer to goods that have been set aside or allocated to a specific contract, while ascertained goods are goods that have been measured, weighed, or otherwise identified as the specific goods to be delivered. Specified goods is not a commonly used term in this context.

Question 17

The labelling and packaging legislation that applies to alcohol,milk,and margarine products is derived from which of the following sources?

Accepted Answer

Provincial legislatures in Canada have authority over food and beverage labelling and packaging requirements within their respective provinces. Therefore, the labelling and packaging legislation that applies to alcohol, milk, and margarine products is derived from provincial legislation.

Question 18

EcoGreen Garden Centre Inc.will pay $2400 for the two tons of organic fertilizer it ordered for delivery in March.The fertilizer is to be packaged in 20 kg bags and then packed onto two separate one-ton pallets for shipment.In this instance,what rule under sale of goods legislation will dictate when title to the goods passes to EcoGreen?

Accepted Answer

Rule 2, also known as the "shipment contract" rule, states that title to the goods passes to the buyer at the time of shipment, meaning when the goods are delivered to the carrier for transportation. In this case, the fertilizer will be packed onto pallets for shipment, indicating that the contract is a shipment contract. Therefore, once the goods are loaded onto the carrier, title to the fertilizer will pass to EcoGreen.

Question 19

D.A.D.Enterprises Inc.(DAD)is located in Whitehorse.It has entered into a contract for the purchase of goods from Finnigan Fishing Rods & Reels Ltd.(Finnigan).In accordance with the terms of the contract,Finnigan must,among other things,arrange shipping.Which of the following exemplifies the type of arrangement between these parties?

Accepted Answer

The term "c.i.f." stands for "cost, insurance, and freight," meaning Finnigan is responsible for arranging and paying for shipping, insurance, and freight to Whitehorse, aligning with the contract's requirement for Finnigan to arrange shipping.

Question 20

With respect to the sale of goods,which of the following would strongly influence a seller's ability to exercise its right to stoppage in transit?

Accepted Answer

Stoppage in transit refers to the right of a seller to stop the delivery of goods that are in transit to the buyer, and take back possession of them. This right can be exercised only when the buyer becomes insolvent, and the goods are still in transit. Thus, option B - goods remain undelivered and buyer has become insolvent - would strongly influence a seller's ability to exercise its right to stoppage in transit. The other options do not directly affect this right.

Quiz 23: Sales and Marketing: The Contract, Product, and Promotion