Defect in Sale of Goods
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What is considered a defect in the context of common law?

  • An issue that appears after extensive usage
  • An abnormal quality that impairs the utility of the product (correct)
  • A minor scratch on a new item
  • Any visible damage found on the item

    • A second-hand car is always considered a defective car under common law.

    False

    What are the two important matters to consider in determining if an imperfection is a defect?

    The class of goods and the purpose for which it is deemed to be sold.

    In Curtaincrafts (Pty) Ltd v Wilson, the haircord carpet was considered defective because it was not __________.

    <p>colour-fast</p> Signup and view all the answers

    Match the following goods with their potential purposes:

    <p>Silver vase = Holding water Wood = Building a house Second-hand car = Transportation Scrap metal = Melting down</p> Signup and view all the answers

    What might be a reason for accepting temporary breakdowns in older machines?

    <p>They are expected from ordinary wear and tear</p> Signup and view all the answers

    A defect can only be identified once the product has been used several times.

    <p>False</p> Signup and view all the answers

    Which case discussed a haircord carpet that became discoloured due to water?

    <p>Curtaincrafts (Pty) Ltd v Wilson</p> Signup and view all the answers

    What defines a patent defect?

    <p>A defect which is clearly visible to the naked eye</p> Signup and view all the answers

    A buyer can claim a remedy for a patent defect even if they did not object at the time of delivery.

    <p>False</p> Signup and view all the answers

    What should a buyer do if they notice a patent defect in the goods immediately upon delivery?

    <p>The buyer should object immediately and claim a remedy.</p> Signup and view all the answers

    In the Holmdene case, the bricks supplied to the builder contained _____ quantities of magnesium sulphate.

    <p>deleterious</p> Signup and view all the answers

    What happens if both parties are aware of a particular purpose for which a product is being sold?

    <p>Any imperfection preventing the purpose is considered an aedilitian defect.</p> Signup and view all the answers

    Match the case with its summary:

    <p>Glaston House v Inag (Pty) Ltd = Property purchased for redevelopment Sarembock v Medical Leasing Services (Pty) Ltd = Purchase of a Porsche as an investment Holmdene case = Bricks with excessive efflorescence due to defects Cape v Hesom = Buyer must be vigilant about defects</p> Signup and view all the answers

    Imperfections that hinder ordinary use are considered non-defects.

    <p>False</p> Signup and view all the answers

    What is the consequence of selecting goods with obvious defects without objection?

    <p>The buyer is taken to have purchased the goods subject to the defect.</p> Signup and view all the answers

    What defines a latent defect according to Corbet JA?

    <p>A defect not visible or discoverable upon inspection</p> Signup and view all the answers

    A buyer cannot claim any remedies if they buy a defective item despite obvious signs of defect.

    <p>False</p> Signup and view all the answers

    In which case did a buyer claim for pigs infected with measles that went unnoticed during inspection?

    <p>Zieve v Verster &amp; Co</p> Signup and view all the answers

    The buyer may claim __________ for consequential loss if the goods are latently defective and an additional factor is present.

    <p>damages</p> Signup and view all the answers

    Which of the following is an example of a situation that may justify a claim for consequential loss?

    <p>A seller knowingly sells defective goods without disclosure</p> Signup and view all the answers

    The test for determining whether pigs had measles was credible and always reliable in Zieve v Verster & Co.

    <p>False</p> Signup and view all the answers

    In the case of __________, the significance of the external indication of a defect was highlighted.

    <p>Knight v Hemming</p> Signup and view all the answers

    Match the following circumstances under which a buyer may claim for consequential loss:

    <p>Seller fraudulently sold defective goods = Claims for performance or rescission in terms of the actio empti Seller gave warranty for fit for purpose = Claim under actio empti Buyer inspects an item and notices obvious defect = No claim for consequential loss if defect is visible</p> Signup and view all the answers

    What type of warranty is implied if a seller guarantees the product will be defect-free?

    <p>Express Warranty</p> Signup and view all the answers

    A buyer can claim for consequential loss if the goods sold are latently defective.

    <p>True</p> Signup and view all the answers

    In the case of Minister van Landbou-Tegniese Dienste v Scholtz, what was the primary issue leading to the lawsuit?

    <p>The bull purchased was found to be infertile, breaching the tacit warranty of fitness for purpose.</p> Signup and view all the answers

    The warranty that ensures goods are of good quality and suitable for their intended purpose is known as a warranty of __________.

    <p>fitness for purpose</p> Signup and view all the answers

    Match the following types of warranties with their definitions:

    <p>Express Warranty = A clear and specific guarantee made by the seller about the product Tacit Warranty = An implied assurance provided in a contract based on circumstances Warranty of Merchantable Quality = Quality standard that goods must meet for sale Warranty of Fitness for Purpose = Assurance that a product is suitable for the buyer's intended use</p> Signup and view all the answers

    What is one of the conditions for a buyer to successfully claim for a warranty breach?

    <p>The seller guaranteed the goods would be defect-free</p> Signup and view all the answers

    Tacit warranties cannot be enforced if they contradict the expressed terms of a contract.

    <p>True</p> Signup and view all the answers

    Under section 55(2) of the CPA, consumers have the right to receive goods that are __________ suitable for their intended purpose.

    <p>reasonably</p> Signup and view all the answers

    What does section 55(3) state regarding consumers and suppliers?

    <p>Goods must be suitable for the specific purpose indicated by the consumer.</p> Signup and view all the answers

    The exceptio quanti minoris allows a seller to claim the full agreed price even if latent defects are present.

    <p>False</p> Signup and view all the answers

    What is one remedy available for consumers under section 56 of the CPA?

    <p>Specific performance</p> Signup and view all the answers

    The actio quanti minoris allows a purchaser to request a reduction in price due to __________ defects.

    <p>latent</p> Signup and view all the answers

    Match the following sections of the CPA with their descriptions:

    <p>s55(2) = Right to safe, good quality goods s55(3) = Right to goods suitable for a specific purpose s56 = Remedies for non-compliance s57 = Warranty on repaired goods</p> Signup and view all the answers

    Study Notes

    Defect in Sale of Goods

    • A defect is an abnormal quality or attribute that destroys or substantially impairs the utility or effectiveness of the goods sold.
    • Factors considered when determining if an imperfection is a defect:
      • The class of goods the item falls into
      • The purpose for which the thing is sold
    • For example, a carpet that is not colorfast and becomes discolored when water spills on it may be considered defective.
    • For used goods, one must expect temporary breakdowns that result from ordinary wear and tear. A second-hand car is not necessarily a defective car, but it may have defects that seriously impair its condition.
    • The purpose of the sale may influence whether an imperfection is considered a defect.
      • A vase sold as a vase may be defective if it leaks, but not if it is sold as scrap metal.
      • If a property is bought for redevelopment, the purpose is known to both parties.
      • If a Porsche is bought as an investment, it is generally understood that it is being purchased for its value.
    • If there is a particular purpose known to both parties, or if there is a common or ordinary use that any ordinary contracting parties may be deemed to have appreciated, any imperfection preventing or hindering that use is an aedilitian defect.

    Patent Defects vs. Latent Defects

    Patent Defects

    • A defect that is clearly visible to the naked eye or discernible using another sense.
    • The buyer is expected to object immediately and claim a remedy if goods are patently defective.
    • If the buyer does not object immediately and accepts the goods despite the patent defect, they are taken to have purchased the goods subject to the defect.
      • For example, a buyer who purchases a blind ox or a sheep with a scab without objection is not entitled to remedies for those defects.
    • However, a defect being obvious does not always mean the buyer has no recourse.
      • If the defect is difficult to detect even upon inspection, the buyer may still have a claim.
      • For example, a pig may not have visible signs of measles, but an expert may be able to detect it.

    Latent Defects

    • A defect that is not visible or discoverable upon inspection.
    • Latent defects are those that are not discoverable by the ordinary intelligent individual who is not an expert in the goods sold.

    Remedies for Latent Defects

    • A buyer may be able to claim remedies for latent defects if there are additional factors present that justify it.
    • The buyer may be able to claim damages for consequential loss in addition to remedies for the defect itself.
    • Circumstances that justify a claim for consequential loss:
      • The seller fraudulently sold the goods without disclosing the defect, knowing they were defective.
      • The seller gave an express or tacit warranty that the goods would be fit for purpose.
      • The seller had a duty to disclose unusual characteristics relating to or circumstances surrounding the transaction that the buyer should have been aware of.

    Seller's Warranty

    • If the seller has warranted or guaranteed that the goods are not defective, the buyer can claim a remedy under the actio empti, which may include consequential loss.
    • Tacit warranties are implied by the parties based on the application of the hypothetical or officious bystander test.
    • Common types of warranties:
      • Warranty of fitness for purpose
      • Warranty of reasonable merchantable quality

    Consumer Protection Act (CPA)

    • Section 55(2): The right to safe, good quality goods, including a warranty that goods are reasonably suitable for their intended purpose and are of good quality.
    • Section 55(3): If a consumer has informed the supplier of their particular purpose for acquiring the goods, and the supplier ordinarily offers to supply such goods or acts in a manner consistent with being knowledgeable about their use, the consumer has a right to expect the goods will be reasonably suitable for the specific purpose indicated.
    • Section 55(4): The consumer has a right to expect that a product will not be defective if it is not reasonably safe to use.
    • Section 55(5): The consumer has a right to receive information about the goods that is accurate and not misleading.
    • Section 56: Remedies for breach of the CPA, including cancellation of the contract, specific performance, and damages.
    • Section 57: Warranty on repaired goods.
    • Sections 58, 59, and 60: Duties involving hazardous or unsafe goods.
    • Section 61: Liability in damages for breach of the CPA.

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    Description

    This quiz covers the concept of defects in the sale of goods, focusing on how an abnormal quality can affect the utility and effectiveness of products. It examines factors that determine whether an imperfection qualifies as a defect, including the class of goods and their intended purpose. Test your understanding of these legal principles in commerce.

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