Question 1

In a free on board contract,the seller specifies the type of transportation to be used.

Accepted Answer

In a Free On Board (FOB) contract, the seller is responsible for delivering the goods to a specified location, but it is the buyer who specifies the mode of transportation.

Question 2

The transfer of ownership of goods and the principles relating to delivery of the goods is among the key aspects of the contract of sale that are the focus of marketing laws.

Accepted Answer

The statement is true. The transfer of ownership of goods and principles related to their delivery are an important part of the contract of sale and are governed by marketing laws.

Question 3

Unfair trade practices are considered by consumer protection legislation to involve false,misleading,and unconscionable representations made during any of the various forms of transactions for consumer products.

Accepted Answer

Unfair trade practices are indeed considered by consumer protection legislation to involve false, misleading, and unconscionable representations made during various transactions for consumer products.

Question 4

The concept of protecting the consumer implicitly assumes that the commercial purchaser is better able to take care of itself and does not require any kind of safeguards.

Accepted Answer

The concept of consumer protection is based on the assumption that individual consumers are at a disadvantage compared to businesses in terms of information, resources, and bargaining power, and thus require safeguards that commercial purchasers, who are deemed more knowledgeable and capable, do not.

Question 5

Which of the following should a legal risk manager insist upon with respect to advertising performance claims about a new product the company is promoting?

Accepted Answer

A legal risk manager should ensure that any performance claims made in advertising are supported by scientific evidence to avoid misleading consumers and potential legal issues.

Question 6

A customer who has made its purpose for a particular product known to the seller will be deemed to have relied on the advice of the seller in selecting a product fit for that purpose.

Accepted Answer

If the customer has made their purpose known and the seller has provided advice on product selection, the customer will be deemed to have relied on that advice.

Question 7

Once goods are delivered to a carrier under a c.i.f.contract,the seller typically submits the bill of lading and certificate of insurance to the buyer in exchange for payment of the price of the goods.

Accepted Answer

This is because under a c.i.f. contract, the seller has the responsibility to arrange for the shipment of goods to the buyer and to provide insurance coverage for the goods during transit. Once the goods are delivered to the carrier, the seller will typically submit the bill of lading and certificate of insurance to the buyer as proof of delivery and insurance coverage. In exchange, the buyer will make payment for the price of the goods.

Question 8

False or misleading advertising involves illegal business practices that exploit the unequal bargaining position of consumers.

Accepted Answer

The answer of False or misleading advertising involves illegal business...

Question 9

How are promotional statements that are alleged to be either false or misleading to consumers assessed with respect to ascertaining their truth?

Accepted Answer

Promotional statements that are alleged to be false or misleading are assessed with respect to ascertaining their truth through an objective test. This means that the statements are evaluated based on whether a reasonable person would find them to be misleading or false. This approach is taken under common law and has been applied by Canadian courts in various cases. Other options listed, such as the Consumer Packaging and Labelling Act regulations, the federal Competition Act, and Canadian Standards Association guidelines, may be relevant in certain contexts but are not directly tied to the assessment of the truthfulness of promotional statements.

Question 10

The Latin phrase caveat emptor forms the foundation of common law's expectation of purchasers to be aware of what they are purchasing and make appropriate investigations before buying.

Accepted Answer

This is correct. The phrase caveat emptor means "let the buyer beware." It is a principle that places the responsibility on the buyer to investigate a product or service before purchasing it, and it forms the basis of the common law of contract in many countries.

Question 11

Tinsel X-Mas Trees received 200 trees from Misty Tree Farms Ltd.for sale during the holiday season.Tinsel paid a deposit of $500 and Misty granted payment terms of 30 days from date of delivery.Should Tinsel sell all of the trees but neglect to remit payment within the 30 days,Misty will be entitled to claim an action for the price.

Accepted Answer

Misty has granted payment terms of 30 days from date of delivery. If Tinsel neglects to remit payment within the 30 days, Misty is entitled to claim an action for the price.

Question 12

Due diligence is a defence based on adopting reasonable steps to avoid the violation of a legal duty.

Accepted Answer

Due diligence is a legal concept that refers to the effort made by a person or organization to avoid harm or to meet a legal duty. It is often used as a defence in cases where a person is accused of failing to meet their legal obligations. Adopting reasonable steps in line with legal requirements is an important element of due diligence.

Question 13

A number of terms are automatically implied by the Sale of Goods Act into the contracts of parties,even though they may have expressly agreed to exclude the operation of this legislation with regard to their transaction.

Accepted Answer

The answer of A number of terms are automatically implied...

Question 14

The rules contained in the sale of goods legislation determine when title to goods shifts also affect the seller's right to claim damages for non-acceptance.

Accepted Answer

The rules regarding the transfer of title to goods also impact the seller's right to claim damages if the buyer fails to accept the goods as per the terms of the contract. This is because if the title has not yet passed to the buyer, the seller can still claim damages for non-acceptance. However, once the title has passed, the seller's right to claim damages is limited.

Question 15

Unascertained goods must be identified and agreed on at the time a contract is made.

Accepted Answer

Unascertained goods are goods that are not specifically identified at the time a contract is made; they are defined or identified later, based on agreed criteria.

Question 16

Goods not yet set aside and identifiable as the subject of the contract are to be specifically ascertained at the time the contract is formed.

Accepted Answer

Goods not yet set aside and identifiable as the subject of the contract are to be specifically ascertained at the time they are shipped, marked, or otherwise designated as the goods to which the contract refers, not necessarily at the time the contract is formed.

Question 17

A warranty is implied under sale of goods legislation that requires the seller to have the right to sell the goods.

Accepted Answer

The answer of A warranty is implied under sale of...

Question 18

Classification of the relevant term of the contract for sale of goods is essential to determining whether the goods sold by description actually correspond with the description.

Accepted Answer

The answer of Classification of the relevant term of the...

Question 19

When a condition in a sale of goods contract is breached,the sale of goods legislation permits the buyer to ask the court to reduce the purchase price due to the breach.

Accepted Answer

The answer of When a condition in a sale of...

Question 20

Advertising a product at a very low price when you have an insufficient supply to meet expected demand is synonymous with which of the following terms?

Accepted Answer

This is an example of bait and switch, where a customer is lured in with a low price offer, but then offered a similar product for a higher price due to limited availability.

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