← Sale of Goods Act and warranties

Sale of Goods Act and warranties

5 questions. Pick an answer and the explanation reveals below it. Your score updates as you go.

1. Question 1

   When a buyer purchases a vehicle by description from a dealer who sells vehicles of that kind, what does section 15 of the Sale of Goods Act imply about the vehicle?

   • A There is an implied condition that the vehicle will be of merchantable quality, except as to defects that the buyer's prior examination ought to have revealed.
   • B There is only an implied condition of fitness for the buyer's particular purpose, with no condition of merchantable quality.
   • C There is an implied 30-day mechanical warranty backed by the dealer.
   • D Merchantable quality applies only to new vehicles, never to used vehicles.

2. Question 2

   Under section 13 of the Sale of Goods Act, a buyer's right to have and enjoy quiet possession of the goods is what kind of implied term?

   • A An implied warranty
   • B An implied condition
   • C An express warranty written into every bill of sale
   • D A term implied only by the Consumer Protection Act, not the Sale of Goods Act

3. Question 3

   Under section 21 of the Sale of Goods Act, and absent any contrary agreement, when do the goods pass from the seller's risk to the buyer's risk?

   • A When property in the goods is transferred to the buyer, whether or not delivery has occurred
   • B Only when the buyer takes physical delivery of the goods
   • C Only when the buyer has paid the full purchase price
   • D Only when the vehicle permit has been registered in the buyer's name

4. Question 4

   In a consumer agreement, a clause stating that the buyer waives all implied conditions and warranties under the Sale of Goods Act is enforceable against the consumer as long as the consumer signed it.

   • A True
   • B False

5. Question 5

   A dealer accepts a vehicle as a trade-in from a customer who, unknown to the dealer, is not the owner and has no authority from the owner. The dealer then resells the vehicle to a retail buyer in good faith, and the buyer registers the permit. The true owner now demands the vehicle back. Under section 22 of the Sale of Goods Act, what is the retail buyer's title position?

   • A The retail buyer acquires no better title than the trade-in customer had, unless the true owner is by their conduct precluded from denying the seller's authority to sell.
   • B Because the buyer paid in good faith and was unaware of the title defect, the buyer takes clear title and the original owner has no claim.
   • C Registering the vehicle permit in the buyer's name cures the title defect and defeats the original owner's claim.
   • D The dealer's role as a registered motor vehicle dealer automatically passes clear title to any retail buyer.