With respect to a sale of goods, which one of the following statements is true?
A) In a retail sale of new goods, the seller can always exclude liability for breach of all implied terms in the Sale of Goods Act by a carefully drawn exemption clause.
B) A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in payment for goods that he still possesses has a choice of rights against the goods themselves and an action for breach of contract against the buyer.
C) The Sale of Goods Act provides terms that are not to be part of a contract for goods even if the parties failed to mention anything about such matters.
D) In private personal transactions, a buyer of goods has the protection of the "fit for purpose" provision.
E) The Sale of Goods Act does not allow the use of exemption, exculpatory, or limitation clauses.

Question

Quizplus · Accepted Answer

The correct answer is B because the Sale of Goods Act allows a seller to retain or reclaim goods if payment is not finalized (e.g., a cheque bounces), and the seller can also pursue legal action for breach of contract. This provides a dual remedy in cases of non-payment.

With Respect to a Sale of Goods, Which One of the Following