Sale of Goods Act and Contract for Sale Quiz

24 Questions

What does the Food and Drugs Act impose on manufacturers?

Strict liability for false or deceptive labelling

Which Act regulates the handling of extremely dangerous products with warning symbols on the packaging?

Hazardous Products Act

What is the purpose of the Weights and Measures Act?

To create a uniform system for comparison of products

What do the Consumer Packaging and Labelling Act aim to prevent?

Misleading product packaging

What have New Brunswick and Saskatchewan legislated for consumer goods that do not deliver a reasonable level of performance or durability?

Expanded buyers’ rights and sellers’ obligations

What is the Canadian Motor Vehicle Arbitration Plan (CAMVAP) designed to resolve?

Disputes for owners of new vehicles under warranty

Why might itinerant or direct sellers pose a special problem for consumers?

Selling occurs at the prospective buyer’s residence

What is required for itinerant or direct sellers?

To be licensed or registered

What is the goal of the Business Practices Act?

To prevent false or misleading statements and unconscionable contracts

What does the federal Competition Act prohibit regarding advertising?

False and misleading advertising regarding price and product performance

What are examples of deceptive trade practices prohibited by the federal Competition Act?

Bait and switch, referral selling, and double ticketing

How are collection agencies regulated by provinces and territories?

Through licensing or registration requirements

According to the Sale of Goods Act, to which type of property does the Act apply?

Movable property for money consideration

When does title pass to the buyer in a sale of goods contract?

Immediately

What are the implied conditions under the Sale of Goods Act?

Seller's title to goods, time for delivery, goods corresponding to description, and freedom from defects

What concept does the 'Let the buyer beware' assume?

The purchaser can discern the fitness of goods for intended purpose

What does the legislation provide in terms of consumer protection?

Restricts the use of exemption clauses and allows a cooling off period for door to door sales

What is payment usually regarded as, unless specified as a condition in the contract?

A warranty

What remedy is available for fundamental breach by a seller?

Rescission

What remedy is available for a breach of warranty?

Damages

What are the remedies available to a seller under the Sale of Goods Act?

Placing a lien on goods, bringing an action for the price, and seeking ordinary damages for non-acceptance

Under the Bankruptcy and Insolvency Act, how long does the seller have to recover delivered goods?

30 days

What does consumer protection legislation prevent sellers from using and require sellers to warrant?

Exemption clauses and that equipment sold to consumers will function for a reasonable period

What actions are permitted under the Sale of Goods Act in terms of retention and resale of goods?

Retention of deposit by the seller, resale of goods after repossession, and stoppage in transitu

Study Notes

Sale of Goods Act and Contract for Sale Summary

Sale of Goods Act applies to the sale of movable property for money consideration, not services or land
Title passes to the buyer immediately in a sale of goods contract, but at a later time in an agreement for sale
The Act provides rules for when title passes, such as specific goods in a deliverable state or unascertained goods
Implied conditions under the Act include seller's title to goods, time for delivery, goods corresponding to description, and freedom from defects
Let the buyer beware concept assumes the purchaser can discern the fitness of goods for intended purpose
Legislation provides consumer protection, restricting the use of exemption clauses and allowing a cooling off period for door to door sales
Payment is usually regarded as a warranty, unless specified as a condition in the contract
Rescission is available as a remedy for fundamental breach by a seller, while damages are available for a breach of warranty
Remedies available to a seller include placing a lien on goods, bringing an action for the price, and seeking ordinary damages for non-acceptance
The Bankruptcy and Insolvency Act allows the seller to recover delivered goods within 30 days
Consumer protection legislation prevents sellers from using exemption clauses and requires sellers to warrant that equipment sold to consumers will function for a reasonable period
Retention of deposit by the seller, resale of goods after repossession, and stoppage in transitu are permitted under the Act

Test your knowledge of the Sale of Goods Act and Contract for Sale with this summary quiz. Explore key concepts such as title transfer, implied conditions, consumer protection, remedies for breach, and seller's rights under the legislation.

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