Question 1

Delbert stops at a yard sale to look for old musical equipment.He sees an amplifier that is exactly what he has been looking for.Delbert believes it is worth a lot more money than the $50 the owner is requesting.Delbert asks the owner whether or not the amplifier is in good working condition.The owner tells him that he knows nothing about the amplifier and is not prepared to comment further.Delbert purchases the amplifier for $50.Later he finds out that it had been stolen from a nearby music store and did not belong to the owner at the time he purchased it.Delbert's action for recovery of his money against the owner will

Accepted Answer

The implied term as to title means that the seller has the right to sell the goods they are offering. In this case, the owner did not have the right to sell the stolen amplifier, and therefore, breached the implied term as to title. Delbert can seek recovery of his money from the owner for the breach of this implied term. The principle of caveat emptor (buyer beware) is not applicable in this case because the seller made no misrepresentation, and the goods were not bought by description but rather were physically examined by Delbert. The music store paying a reward is speculative and not relevant to Delbert's claim against the owner.

Question 2

Where the parties fail to state a price in a sale of goods transaction,what effect will the Sale of Goods Act have on that agreement?

Accepted Answer

The answer of Where the parties fail to state a...

Question 3

Under the Sale of Goods Act,the seller has a lien against the goods and can recover those goods from the purchaser in the event of default.

Accepted Answer

Under the Sale of Goods Act, the seller's lien typically allows the seller to retain possession of the goods until payment is made, but it does not allow the seller to recover goods already delivered to the purchaser in the event of default.

Question 4

Which of the following is true with regard to the implied terms of the Sale of Goods Act?

Accepted Answer

The Sale of Goods Act provides that when buying a car, the buyer has implied terms of the contract to receive good title, acquire quiet possession, and receive a car free from any encumbrances. Option A is incorrect as the Act provides that goods must match their description. Option B is incorrect as the Act provides that goods must be fit for their purpose. Option C is incorrect as the Act does not provide a specific delivery timeline. Option D is incorrect as "merchantable quality" means that goods must be of reasonable quality and free of defects, but not necessarily without flaw.

Question 5

Quiet possession means that goods have to be usable as intended without interference.

Accepted Answer

Quiet possession is a legal term meaning that the goods must be usable as intended without interference or obstruction. This includes the right to exclude others from using or interfering with the goods.

Question 6

Mrs.Quale bought a new sewing machine from Androcles' Sewing Centre because she thought that,as well as using it herself,her daughter,Susan,would also be able to use it for her high school home economics projects.Unfortunately,because of a manufacturing defect,the machine ran wild when Susan was using it and it destroyed her project,sewed the end of her finger,and sprayed oil all over the carpet.Androcles' Sewing Centre had bought the machine from Midmen Distributors Ltd.,which had bought it originally from the manufacturer,General Stitchers Inc.Which one of the following statements is false with respect to the available remedies in this situation?

Accepted Answer

This statement is false because as a distributor, Midmen Distributors Ltd. can be held liable for the defective product under the principles of strict liability, even though it was not the manufacturer.

Question 7

Gregory went to Collegiate Sports Ltd.with his dad,who asked for some shoes for Gregory suitable for playing squash.Gregory was given a pair of running shoes suitable only for jogging.His dad paid by cash.That evening,wearing the new shoes while playing squash,Gregory broke his ankle.In the ensuing lawsuit,the statement of claim cited the provisions of the Sale of Goods Act.Which of the following is true if it were proven that the shoes were inappropriate and the cause of the injury?

Accepted Answer

The answer of Gregory went to Collegiate Sports Ltd.with his...

Question 8

Explain what is meant by merchantable quality.

Accepted Answer

The answer of Explain what is meant by merchantable quality....

Question 9

O'Neil bought a new car from a Chevrolet dealer for family use.The contract he signed contained the following clause: "The parties hereto expressly agree that the dealer is not liable for any breach of condition or warranty,express or implied." He also bought a used car radio from the dealer for his old car,which he was keeping.The contract for the radio was not in writing.The car did not run properly; O'Neil had it back in the shop seven times in three weeks.It was finally determined that the problem was due to a faulty transmission.Unfortunately,the car radio didn't work either.On these facts,which of the following is true?

Accepted Answer

The exemption clause in the contract for the car does not apply to O'Neil's situation because the car had a fundamental breach of contract with a faulty transmission. Furthermore, the Sale of Goods Act covers both new and used goods, and the contract for the radio does not need to be in writing as long as there is evidence of an agreement. Therefore, O'Neil has an action for breach of contract against the dealer for both the car and the radio.

Question 10

Edward goes to his neighbourhood hardware store and asks for a six-foot by two-foot piece of plywood.He also requests that it be "sturdy".Edward purchases the plywood and proceeds to use it as a makeshift bridge for his dog,a one-hundred-pound black lab,to cross over a small ditch in the back yard.The first time his lab attempts to cross the bridge,it breaks and the dog falls,fracturing a bone in his leg.Edward's suit against the hardware store for the veterinarian bills will:

Accepted Answer

The hardware store did not breach any implied term of fitness because Edward did not expressly state the particular purpose for which he intended to use the plywood. The hardware store provided the requested item, but it was Edward's decision to use it as a makeshift bridge for his dog. Therefore, the liability falls on Edward and not the hardware store.

Question 11

If goods are purchased by description or by sample and what is actually delivered does not match the description or sample,caveat emptor applies.

Accepted Answer

Caveat emptor, meaning "let the buyer beware," does not apply in this situation because the principle of goods being as described or matching the sample is a fundamental expectation in contract law, and the seller is responsible for ensuring the goods match the description or sample provided.

Question 12

When the sale of goods is involved and a specific price has not been agreed upon,a reasonable price must be paid.

Accepted Answer

According to the Uniform Commercial Code, if a sale of goods does not have a specified price, then a reasonable price must be paid.

Question 13

John bought a used car for $5000.Shortly afterward,a bailiff acting for an unpaid chattel mortgagee who had properly registered his claim in time seized the car.In which of the following circumstances can John sue the seller?

Accepted Answer

John can sue the seller in all of the given circumstances because the seller's assurance (explicit in A and B, implicitly assumed in D) or the lack of disclosure regarding the encumbrance misled John into buying the car under false pretenses. Even if John forgot to check the registry (C), the seller's responsibility to disclose such critical information remains, especially if the seller was aware of the encumbrance.

Question 14

Which of the following statements is correct with respect to the Sale of Goods Act?

Accepted Answer

The Sale of Goods Act implies certain terms in contracts of sale, such as the seller having the right to sell the goods and that the goods are of satisfactory quality. However, parties can still agree to different terms in their contract as long as it does not conflict with those implied terms. The Act does not apply to the sale of land, and parties are allowed to contract out of certain terms, but not all. The Act also does not apply to the assignment of a contractual claim.

Question 15

With respect to a sale of goods,which one of the following statements is true?

Accepted Answer

Option B is true as per the principle of "right to lien" which grants the seller the right to retain possession of the goods until he receives the full payment, and if the cheque bounces, the seller can exercise this right and also sue the buyer for breach of contract. The other options are incorrect. Option A is incorrect as the risk of loss passes from the seller to the buyer upon delivery. Option C is incorrect as the Sale of Goods Act applies only to the sale of goods and not to real estate or bonds. Option D is incorrect as the law mandates that goods sold must be fit for their intended purpose and of merchantable quality, and this cannot be overridden by any agreement. Option E is incorrect as the time of payment is a matter of agreement between the parties and can be different from 30 days.

Question 16

The Sale of Goods Act places certain obligations on the seller with respect to conveying the title.What are those requirements?

Accepted Answer

The answer of The Sale of Goods Act places certain...

Question 17

Explain what obligation the Sale of Goods Act puts on the seller with respect to fitness and quality.

Accepted Answer

The answer of Explain what obligation the Sale of Goods...

Question 18

Quiet possession of the goods means that the goods must be of merchantable quality and free from any inherent defect.

Accepted Answer

Quiet possession of the goods refers to the buyer's right to use the goods without interference from the seller or claims from third parties, not to the quality or defect-free nature of the goods.

Question 19

Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.

Accepted Answer

The answer of Explain the importance of the provisions of...

Question 20

In commercial transactions,courts view exemption clauses as having been negotiated terms of the contract with consideration calculated on the basis of the liability associated with the clause and,therefore,are reluctant to overturn these clauses when they are clear and contain no ambiguity.

Accepted Answer

This statement accurately reflects the position of courts regarding exemption clauses in commercial transactions.

Quiz 5: Legislation in the Marketplace