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Questions and Answers
What is the main responsibility of the seller in a transaction involving the sale of goods?
What is the main responsibility of the seller in a transaction involving the sale of goods?
- To bear all risk of loss until the goods are delivered
- To arrange insurance coverage for the goods sold
- To ensure the buyer receives the goods immediately upon payment
- To clarify when title and risk are transferred to the buyer (correct)
Under what circumstances will the buyer not automatically gain title to the goods?
Under what circumstances will the buyer not automatically gain title to the goods?
- If the seller states that payment is required first
- If there is an intention to transfer title at a later date (correct)
- If the buyer is not yet in possession of the goods
- If the goods are delivered before payment is made
What does the phrase 'risk follows title' imply in a sale of goods?
What does the phrase 'risk follows title' imply in a sale of goods?
- The seller retains risk until payment is complete
- The risk is shared equally between buyer and seller
- The buyer bears the risk once ownership is transferred (correct)
- Ownership guarantees protection from all types of loss
What statutory provisions resolve disputes about when title passes if no agreement was made?
What statutory provisions resolve disputes about when title passes if no agreement was made?
How can parties best ensure clarity on the transfer of title in a sale?
How can parties best ensure clarity on the transfer of title in a sale?
Which of the following is NOT a right conferred by ownership of goods?
Which of the following is NOT a right conferred by ownership of goods?
What occurs when there's a disagreement about the timing of title transfer?
What occurs when there's a disagreement about the timing of title transfer?
What does it mean to possess goods without holding title?
What does it mean to possess goods without holding title?
What happens if a seller breaches a contract after the title has passed to the buyer?
What happens if a seller breaches a contract after the title has passed to the buyer?
In the event of a breach of warranty, which of the following claims is a buyer entitled to?
In the event of a breach of warranty, which of the following claims is a buyer entitled to?
What is the right of repudiation concerning a breach of contract?
What is the right of repudiation concerning a breach of contract?
When is it necessary for a seller to mitigate their loss?
When is it necessary for a seller to mitigate their loss?
Which statement best describes the difference between conditions and warranties in sales contracts?
Which statement best describes the difference between conditions and warranties in sales contracts?
What obligation does a seller retain if the buyer breaches a warranty?
What obligation does a seller retain if the buyer breaches a warranty?
What determines whether damages or the right to return goods is granted to the innocent party?
What determines whether damages or the right to return goods is granted to the innocent party?
In which situation can a buyer return goods after a breach?
In which situation can a buyer return goods after a breach?
What is the significance of identifying whether goods are specific, unascertained, or future in a contract?
What is the significance of identifying whether goods are specific, unascertained, or future in a contract?
Under which circumstance does the property in specific goods pass to the buyer?
Under which circumstance does the property in specific goods pass to the buyer?
When do unascertained goods become specific goods in a contract?
When do unascertained goods become specific goods in a contract?
What happens if specific goods in a deliverable state are destroyed after a contract is made?
What happens if specific goods in a deliverable state are destroyed after a contract is made?
Which of the following accurately defines future goods in a contract?
Which of the following accurately defines future goods in a contract?
In a contract for the sale of specific goods that require alterations by the seller, when does the property pass to the buyer?
In a contract for the sale of specific goods that require alterations by the seller, when does the property pass to the buyer?
What would be the buyer's right if specific goods that were agreed upon in a contract are lost before delivery?
What would be the buyer's right if specific goods that were agreed upon in a contract are lost before delivery?
Which option best describes a seller's obligation regarding goods that need to be made deliverable?
Which option best describes a seller's obligation regarding goods that need to be made deliverable?
Flashcards
Specific Goods
Specific Goods
Goods that exist and can be identified when the contract is formed.
Unascertained Goods
Unascertained Goods
Goods that have not been set aside and identified as the subject matter of a contract.
Future Goods
Future Goods
Goods that do not exist yet at the time the contract is made.
Rule 1 (Sale of Specific Goods)
Rule 1 (Sale of Specific Goods)
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Rule 2 (Specific Goods, Seller's Actions)
Rule 2 (Specific Goods, Seller's Actions)
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Deliverable State
Deliverable State
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Passing of Property
Passing of Property
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Risk of Loss
Risk of Loss
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Ownership Transfer in Sales Contracts
Ownership Transfer in Sales Contracts
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Seller's Remedies (No Title Transfer)
Seller's Remedies (No Title Transfer)
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Seller's Remedies (Title Transfer)
Seller's Remedies (Title Transfer)
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Breach of Condition
Breach of Condition
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Right of Repudiation
Right of Repudiation
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Breach of Warranty
Breach of Warranty
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Buyer's Rights with Warranty Breach
Buyer's Rights with Warranty Breach
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Seller's Rights with Warranty Breach
Seller's Rights with Warranty Breach
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Transfer of Title
Transfer of Title
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Contract of Sale
Contract of Sale
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Sale of Goods Act
Sale of Goods Act
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Delivery & Payment Terms
Delivery & Payment Terms
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Risk Follows Title
Risk Follows Title
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Ownership vs Possession
Ownership vs Possession
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Purchase Price
Purchase Price
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Study Notes
Chapter 23: The Sale of Goods
- Salish Sea Natural Products Limited (SSNP) is a business owned by Tabitha Joe, focused on natural hair and beauty products.
- Their product line, "Sea Goddess", consists of temporary hair colorants in various colors.
- Products are packaged in eye-catching, biodegradable packaging.
- Samples have been sent to spas and salons to generate interest.
- Joe's goal is to eventually sell Sea Goddess directly to consumers online.
Business Law in Practice
- The sale of goods is influenced by contract and tort law, along with federal and provincial statutes.
- These laws protect consumers from harm, ensure a fair market, and prevent unfair selling practices.
- Laws related to the sale of goods are discussed in this chapter.
Introduction
- The sale of goods is influenced by numerous laws (contract and tort) and regulations.
- The main objectives of relevant laws are protecting parties to sales, particularly buyers, protecting consumers from harm, ensuring a fair and competitive market, and preventing unfair selling practices.
The Contract of Sale
- The contract of sale is the legal foundation of any sale of goods transaction.
- Key aspects to consider include the terms of the contract related to the sale, transfer of ownership, payment, and delivery, and remedies for breaches.
The Common Law
- Buyers typically have expectations about goods' characteristics and attributes (like Sea Goddess being properly manufactured and safe.)
- The historic common law principle "caveat emptor" ("let the buyer beware") implied buyers take responsibility for assessing goods before purchase.
- However, judges later developed principles that better protected consumers and formalized them in sale of goods statutes.
Sale of Goods Legislation
- Sale of Goods Act laws, in most areas of Canada, are based on England's 1893 legislation.
- The legislation implied terms into every sale of goods transaction (unless terms were explicitly changed), concerning transfer of ownership, and risk of damage or loss.
- Provinces may vary specific conditions or exclude such terms, especially for consumer transactions.
- For the Sale of Goods Act to apply, a direct contract between the buyer and the seller must exist.
Implied Terms-Conditions and Warranties
- Conditions and warranties are different types of implied terms in a sale of goods contract.
- Breach of a condition gives the innocent party the option of repudiation (rejecting the contract) or pursuing a lawsuit after retaining the goods.
- Implied terms include the seller's right to sell, the goods' merchantability, fitness for purpose, and correspondence with samples or descriptions.
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Description
This quiz covers Chapter 23, focusing on the sale of goods as it pertains to business law practices. It discusses the influence of contract and tort laws on consumer protection and market fairness. Test your knowledge on legal principles affecting businesses like Salish Sea Natural Products Limited.
