Chapter 5 Flashcards
(34 cards)
What will the court determine when the goods and services are sold together?
Whether the contract was the performance of a service or a transfer of goods.
What Goods rule is it when a reasonable person would buy the same good without a price reduction?
Good of merchantable quality.
What is Goods rule is it when the buyer relies on the seller for information on which product?
Goods must be fit for intended use.
What is the liquidated damage remedy for unpaid seller?
Keep the deposit if the contract is not performed.
What is the remedy called with which the court may require the guilty party to go through with the contractual promise?
Specific performance
What is action for the price?
When the title and delivery has passed, the seller is entitled to its full price.
What is called when the seller withholds goods from a buyer until the buyer has paid for them ?
Lien
What is it called when buyer becomes insolvent and the goods have not been delivered?
Stoppage in transit.
In what circumstance does a seller have the right to repossess goods if buyer fails to pay for them
Bankruptcy
What Act prohibits ads with fake results or testimonies that cannot be verified?
Competition act
What is it called when there is a timeframe for which the buyer of a service may cancel the contract from a door salesmen?
Cool-off period.
What are required by telemarketers to disclose to you?
Disclose company name, purpose of the call, product and service, terms
Banks are required to do disclose what in regards to credit, interest rate, and charges?
Disclosure of the true cost of credit.
What do banking agreements set out to do?
Specify who has authority to issue instructions to the bank.
What is a negotiable instrument
Written contract containing an unconditional promise or order to pay a sum on demand to a specific person
Who is allowed to claim on a notice of assignment?
Anyone with possession of it.
What is the process for secured and unsecured creditors for enforcing their rights?
Secured do not need to bring to court, while unsecured do.
When is the title transferred in a conditional sale?
When the series of installment payments have been completed.
What is a general security agreement?
The right for creditor to take all of their assets, before and after they default.
Who is given competing priority to collect?
The first to perfect interest.
What are the stages of the Bankruptcy and insolvency act?
Uniform practice across the country
Equitable distribution to creditor
Framework for working out arrangements
Release debtor with fresh start.
What does the BIA consider as a commercial debtor?
Less than 75000 debt or secured by a mortgage.
What is the priority among creditors order?
Secured creditors
Preferred creditors
General unsecured creditors
What is a preferred creditor?
Owed wages and taxes
