Exam 13: Special Contracts: Sale of Goods

A) Marco sold a bicycle to Tara.Although she received the bike immediately, she did not pay any money.She promised to pay $400 in cash within six months.
B) Marco sold a bicycle to Tara.Although she received the bike immediately, she did not pay any money.She gave a cheque to Marco for $400.
C) Marco sold a bicycle to Tara.Although she received the bike immediately, she did not pay any money.She allowed Marco to charge $400 to her credit card.
D) Marco sold a bicycle to Tara.Although she received the bike immediately, she did not pay any money.She gave her old bike to Marco and promised that she would pay $300 within six months.
E) Marco promised to make a gift of a bike to Tara, but he changed his mind and did not give the bike to Tara.

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A) The basic distinction between conditions and warranties is the same under both the Sale of Goods Act and the general law of contracts.
B) Although the parties are generally free to accept or reject parts of the Sale of Goods Act, they cannot decide to treat a statutory condition as if it was a warranty.
C) If there is a breach of contract under the Sale of Goods Act, the plaintiff must use the statutory remedies rather than the remedies that are generally available for a breach of contract.
D) The Sale of Goods Act always imposes an implied condition that the goods are suitable for the buyer's purpose.
E) The Sale of Goods Act now classifies a number of implied obligations as innominate terms.

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A) the implied term regarding description and the implied term regarding fitness for purpose.
B) the implied term regarding description only.
C) the implied term regarding fitness for purpose only.
D) the implied term regarding description, the implied term regarding fitness for purpose, and the implied term regarding merchantable quality.
E) the implied term of merchantable quality only if she relied on his advice in selecting the paint.

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A) Aside from Quebec, every province and territory in Canada is governed by the same Sale of Goods Act.
B) Even though the rules are contained in a statute, they are based on judicial decisions that accumulated over the years.
C) Although the statute first appeared in 1893, its provisions have changed enormously over time to reflect shifts in modern business practices.
D) Because the statute was intended to serve as consumer protection, it cannot be used by corporations.
E) Every province and territory has a Sale of Goods Act, but most statutes have little in common.

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A) a cow
B) a house that has already been built
C) a debt
D) a haircut
E) a boat rental

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There are several important differences ...

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A) stoppage in transit
B) liquidation
C) insolvency
D) mortgage
E) injunction to perform personal services

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A) If the seller has breached one of those implied terms, it has always breached the other as well.
B) The implied term regarding a sale by sample is only concerned with fitness for purpose, and the implied term regarding description is only concerned with the identity of the goods.
C) The implied term for a sale by sample may be ineffective if the buyer failed to reasonably inspect the goods at the time of delivery, but the same is not true of the implied term for description.
D) Neither type of term applies unless the seller ordinarily is in the business of selling the type of goods that the buyer purchased.
E) Both types of implied terms are concerned only with the identity of goods.

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For the purposes of the Sale of Goods Ac...

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The passing of property may affect the r...

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A) concerning description.
B) dealing with samples.
C) that is classified as a condition, rather than a warranty, under the Sale of Goods Act.
D) that requires fitness for purpose.
E) of merchantable quality.

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A) Although the buyer is not required to inspect the goods before purchase, the implied condition of merchantability is entirely inapplicable if an inspection does occur.
B) Although the buyer is required to inspect the goods before purchase, the implied condition of merchantability is applicable to defects that a reasonable person would not have noticed during such an inspection.
C) Goods may be considered to be of merchantable quality even if they are defective in some other way not affecting their merchantability.
D) The implied condition of merchantability applies only if the buyer purchased the goods for personal use.
E) The implied condition of merchantability applies only if the buyer ordinarily deals in the sorts of goods that it purchased from the seller.

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A) Even if the applicable Sale of Goods Act otherwise imposes a writing requirement, Jasper is entitled to rely on the statute if he received some of the widgets from Kate.
B) A Sale of Goods Act never imposes a writing requirement if the parties' agreement can be sufficiently proven by other evidence.
C) Because the Sale of Goods Act was intended to serve as consumer protection legislation, a writing requirement may prevent the seller from relying on the statute, but it never prevents the buyer from using the statute.
D) If Jasper and Kate's contract is governed by a Sale of Goods Act that imposes a writing requirement, their contract is enforceable only if that requirement was met or Jasper paid the full price.
E) If they failed to satisfy a writing requirement, Jasper will not be able to rely on the Sale of Goods Act, but Kate will still be entitled to use the statute's special remedies.

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A) the rules contained in the statute always apply to a sale of goods.
B) the courts cannot rely on cases that occurred before codification.
C) many business transactions can be more easily created.
D) the need for risk management is virtually eliminated.
E) the same statute applies in every common law province and territory.

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