Yates ch16 - test bank PDF

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Business Law in Canada, 11e (Yates) Chapter 16 Sales and Consumer Protection1) To which one of the following contracts would the Sale of Goods Act apply? A) A contract for a table where title to the table will not pass to the buyer until some future date B) A contract for the assignment of a company...

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Business Law in Canada, 11e (Yates) Chapter 16 Sales and Consumer Protection 1) To which one of the following contracts would the Sale of Goods Act apply? A) A contract for a table where title to the table will not pass to the buyer until some future date B) A contract for the assignment of a company's accounts receivable C) A contract by which two computer programs were swapped for two others D) A contract with a dentist to have a tooth filled E) A contract for the purchase of a farm Answer: A Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 2) To which one of the following would the Sale of Goods Act apply? A) A haircut at the local hairstylist B) A contract for the sale of a ranch C) A contract for future goods when title will pass in the future D) A contract for the purchase of a house E) A contract for the sale of intangible property Answer: C Diff: 1 Type: MC Page Ref: 531 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 3) Which of the following statements is correct with respect to the Sale of Goods Act? A) The parties are restricted to contract out of any of the terms of the Sale of Goods Act. B) Some of the terms of the Sale of Goods Act are implied in the contract of sale. C) The terms included in the Sale of Goods Act override the terms agreed upon by the parties to such a sale of goods. D) The Sale of Goods Act does apply to the sale of land. E) The Sale of Goods Act does apply to the assignment of a contractual claim. Answer: B Diff: 1 Type: MC Page Ref: 531 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge

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4) With respect to a sale of goods, which one of the following statements is true? A) Legislation allows a seller to override the requirement that goods supplied be fit and of merchantable quality in consumer transactions. 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 rights against the goods themselves as well as an action for breach of contract against the buyer. C) The Sale of Goods Act also applies to the purchase of real estate and of bonds. D) If the parties do not agree otherwise, the risk of loss stays with the seller until delivery. E) If the parties do not agree otherwise, the time of payment is 30 days after the time of delivery. Answer: B Diff: 2 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 5) Which of the following is true with regard to the implied terms of the Sale of Goods Act? A) The Act does not provide that the goods must be fit for purpose. B) If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a warranty of the contract. C) When you buy a car and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a claim by a bank). D) The Act provides that the goods must be of merchantable quality, and that means that the goods must be without flaw. E) If a buyer places an order for silk after seeing a sample of it, the order delivered must be delivered within 10 days. Answer: C Diff: 2 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge

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6) Which of the following is a statement of facts to which the Sale of Goods Act would apply? A) "Excuse me, there is a mouse in this beer bottle." B) "I asked for a trim! You've cut off four inches!!!" C) "I brought in five shirts to be laundered and you are returning only four to me!" D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime Minister, but received the signature of the Governor General." E) "Today is the closing date and I am willing to tender the full price in cash, namely $50,000, for the house, and you are now telling me that you have no intention of closing." Answer: A Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 7) Which of the following is a statement of facts to which the Sale of Goods Act would apply? A) "We hired you as a bartender, not to join the guests and teach them Texas line dancing!" B) "I paid you to tune the car, but it obviously wasn't done!" C) "Pursuant to the contract, the buyer of the house tendered $50,000 on the closing date, but the seller had changed his mind." D) "There's a small dead insect in my soup!" E) "The deal was this: Fred was to assign to Paul Fred's accounts receivable, and Paul would pay him $5000 cash, but Fred did not honour his promise." Answer: D Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 8) To which one of the following would the Sale of Goods Act not apply? A) A meal in a restaurant B) A contract for the vacant sale of a ranch C) A contract for future goods when title will pass in the future D) A contract for the purchase of a car E) A contract for the sale of tangible personal property Answer: B Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge

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9) To which of the following transactions would the Sale of Goods Act apply? A) A contract to get a dress mended and cleaned B) A contract for a haircut C) A contract for a boat D) A contract for a house E) A contract with a warehouseman to store a Chevrolet car Answer: C Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 10) Which of the following contracts would be covered by the Sale of Goods Act? A) A contract for the sale of a famous painting B) A contract for medical services with a doctor C) The trade of a car for a boat involving no money D) The purchase of a house E) The sale of corporate shares Answer: A Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 11) Which of the following is a statement of facts to which the Sale of Goods Act would apply? A) "Waiter, there is a dead fly in my spaghetti." B) "I ask for a trim! You've cut off five inches!!!" C) "I brought in five shirts to be laundered and you are returning only four to me!" D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime Minister, but received the signature of the Governor General." E) "Today is the closing date and I am willing to tender the full price in cash, namely $70,000, for the farm, and you are now telling me that you have no intention of closing." Answer: A Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge

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12) To which of the following transactions would the Sale of Goods Act apply? A) The oral lease of an apartment for less than two years B) A heart transplant operation C) The sale of an office building D) The sale of shares in a corporation E) The sale of a puppy to be given as a present by the buyer Answer: E Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 13) 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. Answer: B Diff: 2 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 14) If you buy a toaster from a second-hand dealer of small appliances, which of the following is true? A) The Sale of Goods Act does not apply. B) Title to the toaster would pass at the time the buyer picked it up the next day. C) The Sale of Goods Act prohibits the seller from exempting himself from liability in the event that the toaster is not fit for purpose. D) There is an implied term of the contract that the seller has good title, i.e., the right to sell it. E) The risk of loss depends on who has possession of the toaster. Answer: D Diff: 2 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge

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15) To which one of the following contracts would the Sale of Goods Act apply? A) A contract for the sale and purchase of a farm B) A contract for the assignment of a company's accounts receivable C) A contract with an artist to have a portrait painted D) A contract in which one party gives an antique pin in exchange for the other party giving an antique cigar box E) A contract in which the seller sells a computer and ownership will transfer to the buyer at a specified future time Answer: E Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 16) With regard to a contract for the sale and purchase of goods, which of the following is false? A) Title to the goods may pass to the buyer at the time of contract. B) Contracts for the sale of goods valued at more than $2 must be in writing in order to be enforceable. C) The Act provides a number of implied terms that may be added to the contract if the parties failed to mention those particular matters. D) To guard against loss, a buyer of costly goods should have his insurance in place by the time that title passes to him, because the person with title generally bears the loss. E) The buyer of used goods has the protection of the implied terms of the Sale of Goods Act, but the Act does not automatically void an exemption clause in a contract for the sale of used goods. Answer: B Diff: 2 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Recall Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 17) Which of the following complaints would lead to a successful action under the Sale of Goods Act? A) "I paid $1000 for government bonds, but you have sent me shares in a private company that I never heard of!" B) "You are not going to honour our contract for the land?! I planned to build on that lot in the spring!" C) "Waiter, there's a spider in my sandwich." D) "I left the car here with orders to adjust the front lights; I did not order a tune-up!" E) "I hired you to wait tables, not to stand around doing stand-up comedy routines." Answer: C Diff: 1 Type: MC Page Ref: 533 Topic: Ch. 16 - The Sale of Goods Skill: Applied Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act. Bloom's Taxonomy: Knowledge 6 Copyright © 2017 Pearson Canada, Inc.

18) The following events occurred before the goods or parts of the goods were lost or destroyed. In which case would the buyer suffer the loss? A) Al picked out and contracted for a particular computer, and an additional component had to be installed before it was in deliverable state. It was installed, but Al had not been notified that it was ready. B) George ordered a Pentium computer system with 8 gigabytes of RAM and a 1 terabyte hard drive advertised by Kicks Computers. C) Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled. D) Yates chose which of the desks he wanted and contracted for it, but he had agreed to pay and pick it up the next day. E) Heinz contracted for all the corn in Silo A. The seller still had to weigh the corn to determine the price. Answer: D Diff: 2 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Applied Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge 19) Uncle Isaac has had some difficulty in a sale-of-goods contract and wants to know if there are any mistakes in the information he has received with regard to the remedies for breach of such a contract. Indicate the true statement. A) Once the seller of the goods has given up possession of them to the buyer, he has lost his right to sue. B) A court will award a remedy only if there was a breach of warranty. C) An unpaid seller who has possession of the goods has a lien on those goods. That is, he can hold the goods. D) The Sale of Goods Act excludes the possibility of the equitable remedy of specific performance. E) If there has been a breach of contract, the purchaser is only entitled to tort remedies. Answer: C Diff: 2 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Applied Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge

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20) With respect to the breach of a sale-of-goods contract, consider the following statements. Which of these is false? A) Even after the seller has given possession of the goods to the buyer, he may be able to get them back under the provisions of the Bankruptcy and Insolvency Act. B) Before a court will award a remedy, generally it will decide whether the breach was of a condition or a warranty. C) Where a buyer has continued to push a breaching seller for performance, he could lose the right to discharge the contract in the event of a breach of a condition. D) Whether a seller can sue for the price or damages depends upon whether or not title has passed. E) The Sale of Goods Act excludes the possibility of the various equitable remedies such as specific performance. Answer: E Diff: 3 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Applied Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge 21) Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract? A) The risk of loss may depend on who holds title. B) The parties can contradict the provisions of the Sale of Goods Act on this question. C) When unascertained or future goods are involved, the risk transfers once a reasonable time has passed. D) The risk of specific goods may pass upon formation of the contract. E) Where repairs have to be done before delivery, the risk passes when the repairs are made and notice given. Answer: C Diff: 2 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Recall Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge

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22) With respect to a sale of goods, which one of the following statements is false? 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 will be taken to be part of a contract for goods even though the parties failed to mention anything about such matters. D) In commercial transactions, a buyer of goods has the protection of the "fit for purpose" provision, but legislation enables the seller to exempt himself from liability. E) The Sale of Goods Act permits commercial parties to exclude the Act if they mutually want to. Answer: A Diff: 2 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Recall Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge 23) In which of the following would the title pass to the buyer only when the goods were "unconditionally appropriated" with assent? A) Jethro chose the guitar and paid for it, but it had to be strung before it was ready. B) Alice chose a guitar that was ready and he agreed to buy it. They had agreed that he could pay for it next month and pick it up when he paid. C) Mark chose a guitar advertised in the catalogue of Guitars Galore Ltd., called the store, and after some discussion on its features and price, ordered it. D) After some discussion with the owner of Guitars Galore Ltd. as to which of the guitars there were best for a beginner, Rudy bought a guitar for his son "on approval" and took it with him. E) Jenny wanted amplifier A for her guitar, but the store only had amplifier B. She decided to take it because she wanted one right away. Answer: C Diff: 3 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Applied Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge

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24) If the contract doesn't say who bears the loss if an item is lost or stolen, the Sale of Goods Act says risk goes with title. If the contract doesn't say when the title will pass, the Sale of Goods Act implies when it will pass. In which of the following will the statute imply that title will pass to the buyer at the time of the contract? A) George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday. B) Maureen contracts for Ms. Roberts' next year's pumpkin crop. C) Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container. D) Azar goes into a store specializing in old woodworking tools. He chooses a $1000 tooling machine. The contract provides that it will be delivered to his workshop the next morning and he will pay for it in one month. E) While at Sears, Preston decides to buy the style of sofa he sees on display. He pays cash and the store arranges to have one like it, covered in the material he selects, delivered directly to him from the factory. Answer: D Diff: 2 Type: MC Page Ref: 535 Topic: Ch. 16 - Title and Risk Skill: Applied Objective: Chapter 16: 2. Explain the relationship between title and risk and outline the rules for determining who has title. Bloom's Taxonomy: Knowledge 25) Alf bought a car from Mr. Wojchu for $10,000. Shortly afterwards, a bailiff, acting for a lender with a security interest i...