Law chapter 16 quiz - Bold/ Highlights are the correct answer PDF

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Brenda orally offers to sell a number of household items to Darren. No item is worth more than $30, but the total price for the items is $440. Darren orally accepts the offer. Subsequently, Brenda receives an offer to buy all the items for $500 that she accepts. Can Brenda argue that the contract with Darren is not enforceable because it was made orally and not in writing? A. No, because the sale of chattels is not within the Statute of Frauds B. Yes, because the total price in the contract is more than the threshold in the Sale of Goods Act C. No, because the individual price of each item is less than the limit in the Sale of Goods Act D. Yes, because none of the essential information is in writing E. No, because the Sale of Goods Act only applies to sales over $500 The Sale of Goods Act applies to the sale of which of the following? A.Stocks and bonds B. Negotiable instruments C. Debentures D. Services E. Tangible movable items Which of the following is false with regard to goods transferred under an agreement to sell? A. Sale of goods legislation does not apply to the future transfer of goods. B. Parties to an agreement may assign risk contrary to the manner in which risk is assigned under sale of goods legislation. C. A cost, insurance, and freight contract can override provisions of sale of goods legislation. D. Determining who has title is important, as risks are assigned based on who has title. E. Title to the goods does not transfer immediately on the agreement being concluded. As a conditional sale anticipates that money will change hands and that property will transfer, it is covered under the Sale of Goods Act. A.True B. False

An agreement to sell refers to A. the implied term that the goods are in reasonable condition and free from defects that would make them unsuitable for use. B. a contract of sale in which the transfer of goods is deferred to some future time. C. the implied term that goods sold by description will conform to the description. D. the implied term that the seller has a right to sell the goods. E. the transfer of goods from one business to another for the purpose of sale. The victim of a breach of warranty is not released from obligations under the contract, but may be entitled to damages. A. False B. True The implied term of fitness refers to A. the implied term that goods sold by description will conform to the description. B. the transfer of goods from one business to another for the purpose of sale. C. the implied term that the goods are of a type that is suitable for the purpose for which they were bought. D. the implied term that the goods are in reasonable condition and free from defects that would make them unsuitable for use. E. the implied term that the seller has a right to sell the goods. The right of lien is based on the seller having the right to retain the goods that have not been delivered until appropriate payment has been made, even though title may have transferred. A. True B. False The seller loses the right to a lien against the goods when the buyer has defaulted and the seller is in possession of the goods. A. False B. True

If the purchaser of goods becomes bankrupt, or a receiver of the purchaser has been appointed within 30 days of delivery of the goods, the seller A. will not have priority over the buyer's other secured creditors. B. will be able to recover the goods. C. can only recover goods not yet delivered. D. must notify the buyer in all circumstances where he or she intends to resell the recovered goods. E. may resell any recovered goods to recover his or her losses. If goods do not meet the specifications agreed to by the buyer and the seller, the buyer will be able to A. recover all damages suffered as a result of the use of defective goods. B. claim a remedy of specific performance. C. treat the breach as a breach of a condition and discharge the contract. D. treat the breach as a breach of a warranty and discharge the contract. E. modify the goods to attain the agreed on specifications and seek damages. Which one of the following is not an objective of consumer protection legislation? A. To limit the effects of exemption clauses B. To regulate money lenders and credit reporting practices C. To establish liability. D. To impose controls on consumer transactions E. To limit remedies available Consumer protection legislation does not A. affect business practices. B. impose standards and responsibilities. C. deal with advertising. D. regulate goods purchased for resale.

E. concern the use of personal information. Alex purchased an "as is" car from a dealer who had received the car as a trade-in. The dealer was motivated to move the car quickly and offered Alex what he described as a deeply-discounted price. Shortly after purchasing the car, Alex experienced problems with the car that required costly repairs. Which of the following is false regarding Alex's purchase of the car? A. The main concern of any consumer protection legislation relevant to Alex's situation is to protect the consumer. B. Alex may be able to rely on an implied warranty created by consumer protection legislation. C. Alex's obligations and entitlements are determined by the context surrounding the purchase, including the "as is" purchase arrangement. D. Consumer protection legislation attempts to balance Alex's interests as a consumer with the rights of the business owner. E. As Alex had the opportunity to assess the car prior to purchase, all risks associated with the purchase are Alex's the minute the transaction is complete. Consumer protection legislation differs from sale of goods legislation in that consumer protection legislation does not apply to transactions between businesses. A. False B. True As consumer transactions largely occur within provincial boundaries, the provinces have exclusive jurisdiction over the enactment of consumer protection legislation. A. True B. False Joe's Bargain Appliances places an advertisement in a local newspaper proclaiming that it has "Kentag Dishwashers on sale for $499! This weekend only!" Mary arrives at Joe's store at 9:30 on Saturday morning and is told that it has no more Kentag dishwashers left. The clerk shows her some other dishwashers, all of which are priced at more than $1000. Has Joe's Bargain Appliances done anything wrong? A. Yes, it has engaged in bait-and-switch advertising B. It depends on the business practices legislation of the province in question

C. Yes, because it has made a misrepresentation about the Kentag dishwashers D. No, there is nothing illegal about selling out of an advertised product E. No, because the sale of appliances is not regulated by the government Back to Nature Inc. is marketing a new product as an all-natural cure for back pain. When a consumer advocacy lab tests the product, it finds three manufactured chemicals as part of the ingredients. Can the lab do anything about the product? A. Yes, because no medicine can cure most types of back pain B. Yes, because the product guarantees its effectiveness, which is contrary to the Competition Act C. No, because natural products are not regulated by the government D. Yes, because the product is not all natural so it is not labelled accurately, as required by the Food and Drugs Act E. No, because manufactured chemicals can still be considered natural DZZ Corp. has a moneydash–making system worked out using fax paper. It identifies local businesses using older fax machines (which require special paper) and send them, unsolicited, cartons of the fax paper prepared to look like they were ordered. Each box of paper contains this notice: "Opening this package indicates acceptance of the offer to purchase the enclosed fax paper for $250." The fax paper is actually worth about $50. At XWZ Corp., the manager Ed opens a box that arrived unsolicited to find the fax paper and this notice. Does Ed have to pay? A. No, because the goods were unsolicited and provincial consumer protection legislation provides that the consumer will have no liability for using the goods B. No, because the provincial business practices acts require a cooling-off period C. Yes, because opening the package indicated acceptance of the offer to sell D. Yes, because Ed did not just open the carton, he used the paper E. No, because the Competition Act would prevent DZZ from collecting the $250

Cheques are negotiable instruments that involve three parties and can be referred to as a bill of exchange drawn on a bank, payable on demand. A. True B. False...