Business Law in Canada, 11e (Yates)
Chapter 16 Sales and Consumer Protection
1) To which one of the following contracts would the Sale of Goods Act apply?
A) A contract for a table where title to the table will not pass to the buyer until some future date
B) A contract for the assignment of a company's accounts receivable
C) A contract by which two computer programs were swapped for two others
D) A contract with a dentist to have a tooth filled
E) A contract for the purchase of a farm
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
2) To which one of the following would the Sale of Goods Act apply?
A) A haircut at the local hairstylist
B) A contract for the sale of a ranch
C) A contract for future goods when title will pass in the future
D) A contract for the purchase of a house
E) A contract for the sale of intangible property
Answer: C
Diff: 1 Type: MC Page Ref: 531
Topic: Ch. 16 - The Sale of Goods
Skill: Recall
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
3) Which of the following statements is correct with respect to the Sale of Goods Act?
A) The parties are restricted to contract out of any of the terms of the Sale of Goods Act.
B) Some of the terms of the Sale of Goods Act are implied in the contract of sale.
C) The terms included in the Sale of Goods Act override the terms agreed upon by the parties to
such a sale of goods.
D) The Sale of Goods Act does apply to the sale of land.
E) The Sale of Goods Act does apply to the assignment of a contractual claim.
Answer: B
Diff: 1 Type: MC Page Ref: 531
Topic: Ch. 16 - The Sale of Goods
Skill: Recall
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
1
Copyright © 2017 Pearson Canada, Inc.
,4) With respect to a sale of goods, which one of the following statements is true?
A) Legislation allows a seller to override the requirement that goods supplied be fit and of
merchantable quality in consumer transactions.
B) A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in
payment for goods that he still possesses has rights against the goods themselves as well as an
action for breach of contract against the buyer.
C) The Sale of Goods Act also applies to the purchase of real estate and of bonds.
D) If the parties do not agree otherwise, the risk of loss stays with the seller until delivery.
E) If the parties do not agree otherwise, the time of payment is 30 days after the time of delivery.
Answer: B
Diff: 2 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
5) Which of the following is true with regard to the implied terms of the Sale of Goods Act?
A) The Act does not provide that the goods must be fit for purpose.
B) If you ordered a lamp from a catalogue but it did not match the description when you got it,
the seller is in breach of a warranty of the contract.
C) When you buy a car and the contract speaks only of the car and the price, you are entitled to
receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a
claim by a bank).
D) The Act provides that the goods must be of merchantable quality, and that means that the
goods must be without flaw.
E) If a buyer places an order for silk after seeing a sample of it, the order delivered must be
delivered within 10 days.
Answer: C
Diff: 2 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
2
Copyright © 2017 Pearson Canada, Inc.
,6) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "Excuse me, there is a mouse in this beer bottle."
B) "I asked for a trim! You've cut off four inches!!!"
C) "I brought in five shirts to be laundered and you are returning only four to me!"
D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime
Minister, but received the signature of the Governor General."
E) "Today is the closing date and I am willing to tender the full price in cash, namely $50,000,
for the house, and you are now telling me that you have no intention of closing."
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
7) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "We hired you as a bartender, not to join the guests and teach them Texas line dancing!"
B) "I paid you to tune the car, but it obviously wasn't done!"
C) "Pursuant to the contract, the buyer of the house tendered $50,000 on the closing date, but the
seller had changed his mind."
D) "There's a small dead insect in my soup!"
E) "The deal was this: Fred was to assign to Paul Fred's accounts receivable, and Paul would pay
him $5000 cash, but Fred did not honour his promise."
Answer: D
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
8) To which one of the following would the Sale of Goods Act not apply?
A) A meal in a restaurant
B) A contract for the vacant sale of a ranch
C) A contract for future goods when title will pass in the future
D) A contract for the purchase of a car
E) A contract for the sale of tangible personal property
Answer: B
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
3
Copyright © 2017 Pearson Canada, Inc.
, 9) To which of the following transactions would the Sale of Goods Act apply?
A) A contract to get a dress mended and cleaned
B) A contract for a haircut
C) A contract for a boat
D) A contract for a house
E) A contract with a warehouseman to store a Chevrolet car
Answer: C
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Recall
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
10) Which of the following contracts would be covered by the Sale of Goods Act?
A) A contract for the sale of a famous painting
B) A contract for medical services with a doctor
C) The trade of a car for a boat involving no money
D) The purchase of a house
E) The sale of corporate shares
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
11) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "Waiter, there is a dead fly in my spaghetti."
B) "I ask for a trim! You've cut off five inches!!!"
C) "I brought in five shirts to be laundered and you are returning only four to me!"
D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime
Minister, but received the signature of the Governor General."
E) "Today is the closing date and I am willing to tender the full price in cash, namely $70,000,
for the farm, and you are now telling me that you have no intention of closing."
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
4
Copyright © 2017 Pearson Canada, Inc.
Chapter 16 Sales and Consumer Protection
1) To which one of the following contracts would the Sale of Goods Act apply?
A) A contract for a table where title to the table will not pass to the buyer until some future date
B) A contract for the assignment of a company's accounts receivable
C) A contract by which two computer programs were swapped for two others
D) A contract with a dentist to have a tooth filled
E) A contract for the purchase of a farm
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
2) To which one of the following would the Sale of Goods Act apply?
A) A haircut at the local hairstylist
B) A contract for the sale of a ranch
C) A contract for future goods when title will pass in the future
D) A contract for the purchase of a house
E) A contract for the sale of intangible property
Answer: C
Diff: 1 Type: MC Page Ref: 531
Topic: Ch. 16 - The Sale of Goods
Skill: Recall
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
3) Which of the following statements is correct with respect to the Sale of Goods Act?
A) The parties are restricted to contract out of any of the terms of the Sale of Goods Act.
B) Some of the terms of the Sale of Goods Act are implied in the contract of sale.
C) The terms included in the Sale of Goods Act override the terms agreed upon by the parties to
such a sale of goods.
D) The Sale of Goods Act does apply to the sale of land.
E) The Sale of Goods Act does apply to the assignment of a contractual claim.
Answer: B
Diff: 1 Type: MC Page Ref: 531
Topic: Ch. 16 - The Sale of Goods
Skill: Recall
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
1
Copyright © 2017 Pearson Canada, Inc.
,4) With respect to a sale of goods, which one of the following statements is true?
A) Legislation allows a seller to override the requirement that goods supplied be fit and of
merchantable quality in consumer transactions.
B) A seller who has been given a cheque that bounces (is dishonoured for insufficient funds) in
payment for goods that he still possesses has rights against the goods themselves as well as an
action for breach of contract against the buyer.
C) The Sale of Goods Act also applies to the purchase of real estate and of bonds.
D) If the parties do not agree otherwise, the risk of loss stays with the seller until delivery.
E) If the parties do not agree otherwise, the time of payment is 30 days after the time of delivery.
Answer: B
Diff: 2 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
5) Which of the following is true with regard to the implied terms of the Sale of Goods Act?
A) The Act does not provide that the goods must be fit for purpose.
B) If you ordered a lamp from a catalogue but it did not match the description when you got it,
the seller is in breach of a warranty of the contract.
C) When you buy a car and the contract speaks only of the car and the price, you are entitled to
receive good title, to acquire quiet possession, and a car free from any encumbrances (i.e., a
claim by a bank).
D) The Act provides that the goods must be of merchantable quality, and that means that the
goods must be without flaw.
E) If a buyer places an order for silk after seeing a sample of it, the order delivered must be
delivered within 10 days.
Answer: C
Diff: 2 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
2
Copyright © 2017 Pearson Canada, Inc.
,6) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "Excuse me, there is a mouse in this beer bottle."
B) "I asked for a trim! You've cut off four inches!!!"
C) "I brought in five shirts to be laundered and you are returning only four to me!"
D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime
Minister, but received the signature of the Governor General."
E) "Today is the closing date and I am willing to tender the full price in cash, namely $50,000,
for the house, and you are now telling me that you have no intention of closing."
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
7) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "We hired you as a bartender, not to join the guests and teach them Texas line dancing!"
B) "I paid you to tune the car, but it obviously wasn't done!"
C) "Pursuant to the contract, the buyer of the house tendered $50,000 on the closing date, but the
seller had changed his mind."
D) "There's a small dead insect in my soup!"
E) "The deal was this: Fred was to assign to Paul Fred's accounts receivable, and Paul would pay
him $5000 cash, but Fred did not honour his promise."
Answer: D
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
8) To which one of the following would the Sale of Goods Act not apply?
A) A meal in a restaurant
B) A contract for the vacant sale of a ranch
C) A contract for future goods when title will pass in the future
D) A contract for the purchase of a car
E) A contract for the sale of tangible personal property
Answer: B
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
3
Copyright © 2017 Pearson Canada, Inc.
, 9) To which of the following transactions would the Sale of Goods Act apply?
A) A contract to get a dress mended and cleaned
B) A contract for a haircut
C) A contract for a boat
D) A contract for a house
E) A contract with a warehouseman to store a Chevrolet car
Answer: C
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Recall
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
10) Which of the following contracts would be covered by the Sale of Goods Act?
A) A contract for the sale of a famous painting
B) A contract for medical services with a doctor
C) The trade of a car for a boat involving no money
D) The purchase of a house
E) The sale of corporate shares
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
11) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "Waiter, there is a dead fly in my spaghetti."
B) "I ask for a trim! You've cut off five inches!!!"
C) "I brought in five shirts to be laundered and you are returning only four to me!"
D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime
Minister, but received the signature of the Governor General."
E) "Today is the closing date and I am willing to tender the full price in cash, namely $70,000,
for the farm, and you are now telling me that you have no intention of closing."
Answer: A
Diff: 1 Type: MC Page Ref: 533
Topic: Ch. 16 - The Sale of Goods
Skill: Applied
Objective: Chapter 16: 1. Describe the scope of the Sale of Goods Act.
Bloom's Taxonomy: Knowledge
4
Copyright © 2017 Pearson Canada, Inc.
