Question 1

While delivery of goods is a condition and payment is merely a warranty under the Sale of Goods Act,a seller is under no obligation to deliver goods unless payment has been made,or credit terms have been granted.

Accepted Answer

The answer of While delivery of goods is a condition...

Question 2

Donald bought a new car,after looking it over carefully and taking it for a test drive.Due to a defect in the manufacture of the steel from which the back axle was made,the axle collapsed the next day when Donald was driving to work.He was unhurt but the car is a write-off.The loss is his since he had the opportunity to examine the car before buying.

Accepted Answer

The defect in the manufacture of the steel from which the back axle was made was not discoverable upon reasonable inspection by Donald. Therefore, the manufacturer of the car could be held responsible for the defect and Donald may be able to recover the loss through a product liability claim.

Question 3

Jill agrees to sell the quilt she is making to Claire when it is finished.This is not a contract for the sale of goods until the quilt is completed.

Accepted Answer

The answer of Jill agrees to sell the quilt she...

Question 4

The process of business transactions has evolved over centuries.The evolution of business has resulted in the need for a system to govern it and to provide protection for both sellers and buyers.The Sale of Goods Act is the result of that need,and governs all business transactions,for both monetary and non-monetary reward.

Accepted Answer

The Sale of Goods Act primarily governs transactions involving the sale of goods for monetary consideration, not all business transactions or non-monetary rewards.

Question 5

The Strong Arm Collection Agency must be licensed in the province in which it operates,and if it repeatedly uses methods of collection prohibited by the statute,its license to operate may be revoked.

Accepted Answer

This statement is true as collection agencies must be licensed in the province they operate in and may face consequences such as license revocation if they use prohibited collection methods repeatedly.

Question 6

Denuta builds a house on Evan's property.Subsequently,much of the work is found to be substandard,and the municipal building inspector refuses to issue an occupancy permit to Evan.With Evan having relied on Denuta's skill and judgment,Denuta is in breach,under the act,of implied condition of fitness for use intended.

Accepted Answer

The answer of Denuta builds a house on Evan's property.Subsequently,much...

Question 7

Katz purchases a piano from LeBlanc's Music Store.Some weeks later a representative from a finance company approaches Katz and claims a secured interest in his piano.LeBlanc is in breach of implied warranty of quiet possession under the Sale of Goods Act.

Accepted Answer

The Sale of Goods Act implies a warranty of quiet possession, meaning that the buyer should be able to use and enjoy the purchased goods without interference from third parties claiming ownership or security over the goods. In this scenario, the finance company's claim indicates a breach of this warranty by LeBlanc's Music Store.

Question 8

Marvin sells his expensive watch to Sylvester in return for Sylvester's almost new mountain bike.The watch stops working immediately and the jeweller tells Sylvester that it is unmendable.Under the Sale of Goods Act,Sylvester is entitled to the return of his bike provided he gives Marvin back the watch.

Accepted Answer

The answer of Marvin sells his expensive watch to Sylvester...

Question 9

Smith and Brown Ltd.has a standard form contract that contains a clause that says that all warranties and conditions,implied or expressed,at Common Law,under statute or by custom,are excluded from the contract.The Sale of Goods Act allows the company to do this.

Accepted Answer

The Sale of Goods Act allows the exclusion of implied terms, and the company's standard form contract includes a clause that excludes all warranties and conditions, whether implied or expressed. Therefore, it is true that the company can do this.

Question 10

A manufacturer may be found liable for damages under the Food and Drugs Act only when a consumer has been injured by an improperly labelled product.

Accepted Answer

A manufacturer can be found liable under the Food and Drugs Act for reasons beyond just improper labeling, such as manufacturing defects, contamination, or failure to meet safety standards.

Question 11

A doctor ordered 20 boxes of tongue depressors by mail.The supplier had them in stock and sent them off by return mail,but they were never delivered to the doctor's office although the parcel was correctly addressed.They were the property of the doctor when they were lost.

Accepted Answer

The doctor had ordered the tongue depressors and they were sent by the supplier. Since the parcel was correctly addressed, it was not the fault of the doctor that they were never delivered. Therefore, the tongue depressors were the property of the doctor when they were lost.

Question 12

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
-If Slippery Sam does not pay,Big Harry is free to inform Sam's employer that Sam is a delinquent debtor.

Accepted Answer

Big Harry's actions could be considered harassment and defamation, which are illegal. Informing Sam's employer about his debts without consent could violate privacy laws and be considered an unfair debt collection practice.

Question 13

You hear someone in your office talking about the necessity of "home-grown" laws to properly protect Canadians."You can't just adopt another country's laws",your colleague says."You have to tailor them carefully to the Canadian scene or they will not work." The Sale of Goods Act is a good example of what that person is talking about.

Accepted Answer

The Sale of Goods Act in Canada is actually based on the English Sale of Goods Act, demonstrating that laws from another country can be adapted and successfully implemented in Canada.

Question 14

Antonella is slow to pay the invoice on the computer printer delivered to her.Nothing is mentioned in the contract about payment except that it is due on receipt of the invoice.Antonella has breached a warranty.

Accepted Answer

The answer of Antonella is slow to pay the invoice...

Question 15

Since any sale of goods may give rise to a dispute,the Sale of Goods Act provides remedies to the parties involved in any given transaction and helps to alleviate conflict.Remedies for the buyer include liens action for price,damages,and resale.Remedies for the seller include rescission,specific performance,and damages.

Accepted Answer

The remedies listed for the buyer and seller are incorrect. The Sale of Goods Act provides different remedies for buyers and sellers, such as the buyer's right to reject goods and the seller's right to withhold delivery.

Question 16

Anne telephones the stationery store to purchase an electric pencil sharpener for her office for $65.This contract for the sale of goods is unenforceable if Anne changes her mind because it is not in writing.

Accepted Answer

The Uniform Commercial Code (UCC) requires contracts for the sale of goods over $500 to be in writing to be enforceable.

Question 17

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
-If Slippery Sam does not pay the debt,Big Harry is entitled to demand payment of the debt from other members of Sam's immediate family.

Accepted Answer

It is illegal for a debt collector to threaten violence or use abusive language in attempting to collect a debt. Additionally, under the Fair Debt Collection Practices Act, a debt collector is prohibited from contacting anyone other than the debtor or their attorney regarding the debt, with certain exceptions (such as contacting a spouse or parent if the debtor is a minor).

Question 18

The Strong Arm Collection Agency had a number of debts to collect from Slippery Sam,a delinquent debtor.The Agency sent Big Harry to see Sam,and present him with a demand for payment that was drawn to resemble a court summons.Big Harry delivered the demand,but before he departed,threatened to "beat up" Sam,and inform Sam's employer that he was a "dead beat," if he did not pay the debt promptly.
-Big Harry is not entitled to use any physical threats,force,or pressure against Slippery Sam.

Accepted Answer

Collections agencies are regulated under the Fair Debt Collection Practices Act (FDCPA), which prohibits the use of threats or force to collect debts. Big Harry's threats go beyond what is considered acceptable under the FDCPA.

Question 19

"What does caveat emptor mean,Daddy?" said little Shirley.Unwilling to admit he was not sure,Shirley's Daddy said,"It means Let the seller beware"."That's not what this law book says," said little Shirley,and she was right.

Accepted Answer

"Caveat emptor" means "let the buyer beware".

Question 20

"Title and the right of ownership have the same meaning in law," says Vivienne.She is right.

Accepted Answer

Title and ownership are often used interchangeably in legal contexts, and both refer to the legal right of possession and control over property. Therefore, Vivienne is correct in stating that they have the same meaning in law.

Quiz 9: Sale of Goods and Consumer Protection Law