Module #7 - Sale of Goods and Consumer Protection

Question 1

Foundation of Commerce

Answer 1

Sale of Goods

Question 2

Parties in a SOGA transaction

Answer 2

buyers and sellers

Question 3

think about promoting trade and commerce

What was wrong with original common law?

Answer 3

• risk was all on the buyer
• when one side bears all risk, they don’t want to participate
• no more venture into marketplace

Question 4

Sale of Goods Act

Answer 4

-codified laws
- every province has one
- has been the same since 1893

Question 5

rules, what it protects

SOGS - details

Answer 5

• protects only tangible personal property
• specific rules between the buyer and selller

Question 6

details about transaction

SOGS

Answer 6

• goods have to be sold
  -property must be transferred and must be paid for
• money must exchange hands

Question 7

Does leasing fall under SOGS?

Answer 7

NO!

Question 8

When can you modify SOGS conditions?

Answer 8

only in business transactions, parties can modify or exclude the act

Question 9

Test for consumer transaction - what the goods will be used for

Answer 9

if the buyer uses it for domestic/household purposes vs business purposes

Question 10

Conditions

Answer 10

fundamental to the contract
breaching=breach of contract

Question 11

Warranties

Answer 11

minor term breach/ just have to pay damages

Question 12

Implied conditions of SOGS

Answer 12

-seller has right to sell
-goods must match description,
-goods must match sample
-merchantable quality, reasonably
-suitable for intended purpose
-recommending a customer to use a product that is not for its purpose

Question 13

Implied Warranties

Answer 13

-no encumbrances
-delivery within a reasonable time
-payment on time

Question 14

SOGS - passing risk

Answer 14

• helps determine when title passes from seller to buyer
• risk follows title
• title=bears risk of loss
• INTENTION of parties govern pass to buyer

Question 15

remedy for breach

Repudiation

Answer 15

breach of condition –> get your money back

Question 16

remedy for breach

Damages

Answer 16

breach of warranty

Question 17

Consumer Protection Act

Answer 17

-every province has one
-allows consumer to sue in contract instead of tort (regardless of privity)

Question 18

What does consumer protection act apply to?

Answer 18

services and goods

Question 19

Duties regarding CPA

Answer 19

• duty to warn of product hazards
• prohibits false/misleading claims
• make terms visible

Question 20

politicians get a lot of complaints

Controlled business practices

Answer 20

-door to door sales
-timeshares
-fitness clubs
-used cars
-multi level marketing
-debt collection

Question 21

CPA affect on contract law

Answer 21

-modifies freedom to contract
-puts limitationns on contracts to protect consumers
-determine consumer with purpose based test

Question 22

Favors of CPA

Answer 22

-consumers are weaker and less informed
-for consumers to be enthusiastic, we have to protect them

Question 23

Not in favor of CPA

Answer 23

-increases transaction costs
-long term: business are less competetive because too many rules
-annoying when government gets involved in contracts

Question 24

Competition Act - primary goal

Answer 24

reducing behaviour that is anti-competetive

Question 25

Why do we want more competetion?

Answer 25

-better for economy and consumers
-restricts mergers and acquisitions

Question 26

Quasi-Criminal Acts

Answer 26

-bid rigging
-price fixing

Question 27

Reviewable acts

Answer 27

-predatory pricing
-not illegal automatically, can only do them if they don’t lessen competetion

Question 28

Price fixing

Answer 28

an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels

Question 29

Bid rigging

Answer 29

occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise prices or lower the quality of goods or services for purchasers who wish to acquire products or services through a bidding process.

Question 30

Abuse of dominant Position

Answer 30

when a dominant firm or a dominant group of firms engages in a practice of anti-competitive acts, with the result that competition has been, is, or is likely to be prevented or lessened substantially in a market.

Question 31

Refusal to supply/tied selling

Answer 31

refuse to supply someone with a product if you sell a competitor’s product

Question 32

Restrictions on contests and prizes

Answer 32

these are governed by the competition act