Answers To Ch 5 Textbook Exercises Essay

1242 Words Feb 9th, 2015 5 Pages
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.
…show more content…
Which of the following is true? a.

PIPEDA applies unless PEI's legislation is comparable

b.

PIPEDA applies if Joey's business is also federally regulated

c.

The legislation of PEI applies

d.

PIPEDA does not apply because Joey's business does not disclose personal

information in the course of commercial activity

Short Answer
1.

When does title to goods pass from seller to buyer?
Title passes when a contract states that it passes; if a contract is silent, it passes in accordance with the five rules under the Sale of Goods Act.

2.

If Mario trades his wristwatch for an umbrella at a flea market, can he rely on the
Sale of Goods Act to ensure that the umbrella will be of merchantable quality?
No, because the Sale of Goods Act is inapplicable to transactions based on barter. 3.

What is a cooling-off period, and how does it differ from the one-year statutory limitation period for repudiation of unfair consumer contracts?

Canadian Business Law, 2nd Edition, Instructor's Guide
© 2012 Emond Montgomery Publications

4

A ten-day cooling-off period is reserved only for particular kinds of transactions (for example, direct sales agreements) and allows repudiation of contracts that may or may not be unfair. The one-year limitation period allows for repudiation only of unfair consumer contracts where there is evidence of false or unconscionable representations.
4.

Explain what requirements an Internet seller must meet, at the time of a sales

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