Answers To Ch 5 Textbook Exercises
Chapter 5: The Sale of Goods and Consumer Protection Law
Exercises
True or False?
1.
Leases are governed by the Sale of Goods Act. (F)
2.
Fitness for intended purpose is an implied condition under the Sale of Goods Act.
(T)
3.
Specific performance is a remedy available in special circumstances only. (T)
4.
Unpaid sellers have no statutory remedies. (F)
5.
The Consumer Protection Act, 2002 requires that ambiguous contract terms be
construed in favour of the consumer. (T)
6.
The Consumer Protection Act, 2002 creates a ten-day cooling-off period for all
consumer transactions. (F)
7.
The Consumer Protection Act, 2002 requires that the final bill for service for which
an estimate was given is equal to or less than the estimate. (F)
8.
A supplier has the right to tell a retailer how much to charge for its products. (F)
9.
The Competition Act applies to both goods and services. (T)
10. It is an offence under the Competition Act for a company to merge with another and become dominant in the marketplace. (F)
11. The Personal Information Protection and Electronic Documents Act applies to a company's collection and maintenance of personal information for its own marketing purposes. (T)
Canadian Business Law, 2nd Edition, Instructor's Guide
© 2012 Emond Montgomery Publications
1
Multiple Choice
1.
2.
3.
In which of the following areas does the Sale of Goods Act not imply terms?
a.
merchantable quality
b.
right to sell goods
c.
fair price for goods
d.
fitness for purpose
To which of the following does the Sale of Goods Act apply?
a.
the sale of a car
b.
the rental of an apartment
c.
the sale of a house
d.
the rental of a motel room
Ashley purchased a used farm tractor for $9,500. She later discovered that the previous owner's bank had a lien on the tractor. Under the Sale of Goods Act, this is most likely a breach of _____________, which would allow her the remedy of
_____________.
4.
5.
a.
warranty/rescission
b.
Exercises
True or False?
1.
Leases are governed by the Sale of Goods Act. (F)
2.
Fitness for intended purpose is an implied condition under the Sale of Goods Act.
(T)
3.
Specific performance is a remedy available in special circumstances only. (T)
4.
Unpaid sellers have no statutory remedies. (F)
5.
The Consumer Protection Act, 2002 requires that ambiguous contract terms be
construed in favour of the consumer. (T)
6.
The Consumer Protection Act, 2002 creates a ten-day cooling-off period for all
consumer transactions. (F)
7.
The Consumer Protection Act, 2002 requires that the final bill for service for which
an estimate was given is equal to or less than the estimate. (F)
8.
A supplier has the right to tell a retailer how much to charge for its products. (F)
9.
The Competition Act applies to both goods and services. (T)
10. It is an offence under the Competition Act for a company to merge with another and become dominant in the marketplace. (F)
11. The Personal Information Protection and Electronic Documents Act applies to a company's collection and maintenance of personal information for its own marketing purposes. (T)
Canadian Business Law, 2nd Edition, Instructor's Guide
© 2012 Emond Montgomery Publications
1
Multiple Choice
1.
2.
3.
In which of the following areas does the Sale of Goods Act not imply terms?
a.
merchantable quality
b.
right to sell goods
c.
fair price for goods
d.
fitness for purpose
To which of the following does the Sale of Goods Act apply?
a.
the sale of a car
b.
the rental of an apartment
c.
the sale of a house
d.
the rental of a motel room
Ashley purchased a used farm tractor for $9,500. She later discovered that the previous owner's bank had a lien on the tractor. Under the Sale of Goods Act, this is most likely a breach of _____________, which would allow her the remedy of
_____________.
4.
5.
a.
warranty/rescission
b.