Humber College - BLAW150 150-505

Chapter 6: Facilitating Business, Protecting Consumers, and Safeguarding the Marketplace

1. Leases are governed by the Sale of Goods Act.

2. Fitness for intended purpose is an implied condition under the Sale of Goods Act.

3. Specific performance is a remedy available in special circumstances only.

4. Unpaid sellers have no statutory remedies.

5. The Consumer Protection Act, 2002 requires that ambiguous contract terms be construed in favour of the consumer.

6. The Consumer Protection Act, 2002 creates a ten-day cooling-off period for all consumer transactions.

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.

8. If an original of a document must be provided, an electronic version of the document will not satisfy that requirement.

9. The Competition Act applies to both goods and services.

10. An individual has an automatic right to make a complaint to the Competition Tribunal.

11. Bid-rigging can have a pro-competitive or anti-competitive effect, depending on the circumstances.

In which of the following areas does the Sale of Goods Act not imply terms?
1. merchantable quality
2. right to sell goods
3. fair price for goods
4. fitness for purpose

To which of the following does the Sale of Goods Act apply?
1. the sale of a car
2. the rental of an apartment
3. the sale of a house
4. 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 _____________.
1. warranty/rescission
2. condition/rescission
3. warranty/damages
4. condition/damages

The Consumer Protection Act, 2002 would not cover
1. a professional manicure
2. the two-month rental of a summer cottage
3. the purchase of a car
4. the delivery of high-speed cable Internet service to a home business

An unconscionable representation
1. is a criminal act
2. gives a buyer the automatic right to exemplary damages
3. can be evidence that a transaction is unfair and supports a buyer’s right to a remedy
4. is irrelevant because of the caveat emptor rule

A main objective of the Competition Act is
1. ensuring a supply that is adequate to meet the demands of consumers
2. ensuring that inventories held by retailers do not become excessive
3. protecting consumers from harm caused by misleading information
4. discouraging businesses from working together to improve their efficiency

Jake sells towels at the local beach every summer. The label on his towels reads “100% Egyptian Cotton.” In fact, Jake’s towels were manufactured in China from 100 percent Chinese materials. Under the Consumer Protection Act, Jake may be subject to a maximum penalty of
1. a $250,000 fine
2. a $250,000 fine and a three-year prison term
3. a $50,000 fine and a prison term of two years less a day
4. a $25,000 fine and no prison term permitted for this crime

Jane recently opened a general store that sells hand cream, among other things. Jane advertises the hand cream as being effective in the treatment of arthritis, based on significant tests completed by the manufacturer. Which Act is Jane in violation of?
1. The Competition Act.
2. The Food and Drugs Act.
3. The Consumer Packaging and Labelling Act.
4. Jane is not in violation of any Act.

When a business advertises a product at a very low price but does not stock it in sufficient quantity—in the hope that, once the customer is in the store, the customer will end up buying a similar but more expensive product—it is called
1. bait and switch selling
2. tied selling
3. exclusive dealing
4. double ticketing

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