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Chapter 6 Questions & Answers

This document contains 11 true/false questions and 9 multiple choice questions assessing understanding of key concepts from Chapter 6 on facilitating business, protecting consumers, and safeguarding the marketplace. The questions cover topics like implied terms under the Sale of Goods Act, applicability of statutes, remedies for breaches, provisions of the Consumer Protection Act of 2002, unconscionable representations, objectives of the Competition Act, penalties under consumer protection laws, and prohibited sales tactics.

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PRATEEK SHARMA
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383 views

Chapter 6 Questions & Answers

This document contains 11 true/false questions and 9 multiple choice questions assessing understanding of key concepts from Chapter 6 on facilitating business, protecting consumers, and safeguarding the marketplace. The questions cover topics like implied terms under the Sale of Goods Act, applicability of statutes, remedies for breaches, provisions of the Consumer Protection Act of 2002, unconscionable representations, objectives of the Competition Act, penalties under consumer protection laws, and prohibited sales tactics.

Uploaded by

PRATEEK SHARMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 6: Facilitating Business, Protecting Consumers, and

Safeguarding the Marketplace


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. (F)
8. If an original of a document must be provided, an electronic version of the document
will not satisfy that requirement. (F)
9. The Competition Act applies to both goods and services. (T)
10. An individual has an automatic right to make a complaint to the Competition
Tribunal. (F)
11. Bid-rigging can have a pro-competitive or anti-competitive effect, depending on the
circumstances. (F)

Multiple Choice
1. In which of the following areas does the Sale of Goods Act not imply terms?
a. merchantable quality
b. right to sell goods
c. fair price for goods
d. fitness for purpose

2. To which of the following does the Sale of Goods Act apply?


a. the sale of a car
b. the rental of an apartment
c. the sale of a house
d. the rental of a motel room
3. 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
_____________.
a. warranty/rescission
b. condition/rescission
c. warranty/damages
d. condition/damages

4. The Consumer Protection Act, 2002 would not cover


a. a professional manicure
b. the two-month rental of a summer cottage
c. the purchase of a car
d. the delivery of high-speed cable Internet service to a home business

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

6. A main objective of the Competition Act is


a. ensuring a supply that is adequate to meet the demands of consumers
b. ensuring that inventories held by retailers do not become excessive
c. protecting consumers from harm caused by misleading information
d. discouraging businesses from working together to improve their efficiency
7. 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
a. a $250,000 fine
b. a $250,000 fine and a three-year prison term
c. a $50,000 fine and a prison term of two years less a day
d. a $25,000 fine and no prison term permitted for this crime

8. 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?
a. The Competition Act.
b. The Food and Drugs Act.
c. The Consumer Packaging and Labelling Act.
d. Jane is not in violation of any Act.

9. 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
a. bait and switch selling
b. tied selling
c. exclusive dealing
d. double ticketing

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