Baskind: Commercial Law Concentrate 4e Diagnostic test Instructions Answer the following questions and then press 'Submit' to get your score. Question 1 Chapter 1. With a contract of sale, when will the property in the goods be transferred from the seller to the buyer? a) As soon as the goods have been paid for b) As soon as the goods have been delivered c) As soon as the contract is made d) As soon as possible Question 2 Chapter 1. Why aren't the implied terms for contracts of hire-purchase contained in the Sale of Goods Act 1979? a) They are b) They are, but only if the hire purchase agreement is signed on the supplier's premises c) They are, but only if the payments are paid by money d) Because there is no obligation by the hirer of the goods to purchase them. Therefore, there is no obligation to transfer property in them. Consequently, section 2(1) of the Sale of Goods Act 1979 is not satisfied Question 3 Chapter 2. Where will you find the definition of "sale by description"? a) In section 13 of the Sale of Goods Act 1979 b) In section 14 of the Sale of Goods Act 1979 c) In section 61(1) of the Sale of Goods Act 1979 d) It is not defined in the Sale of Goods Act 1979. The common law has given guidance as to its meaning Question 4 Chapter 2. Which of the following is the correct statement as to when the implied term as to satisfactory quality applies? a) When the buyer buys the goods in the course of a business b) When a reasonable person would consider the goods to be unsatisfactory c) When the seller sells the goods in the course of a business d) When the goods would not have been of merchantable quality before the change of terminology to satisfactory quality. Question 5 Chapter 3. What is the primary rule for deciding when property in specific or ascertained goods will transfer to the buyer? a) Rule 1 in section 18 of the Sale of Goods Act 1979 b) Rule 2 in section 18 of the Sale of Goods Act 1979 c) When the parties intend it to pass d) Whichever Rule in section 18 of the Sale of Goods Act 1979 applies to the case Question 6 Chapter 3. When do goods become ascertained? a) As soon as the contract is made b) When the goods are identified as the goods to be used in the performance of the contract c) As soon as they have been delivered to the buyer d) As soon as the buyer pays for them Question 7 Chapter 4. What does section 19(1) of the Sale of Goods Act 1979 allow a seller to do? a) Recover the goods if the buyer fails to pay for them on time b) Recover the goods if the buyer becomes insolvent c) Reserve the right of disposal of the goods until the buyer pays for the goods d) Reserve the right of disposal of the goods until certain conditions are fulfilled Question 8 Chapter 4. What should a seller do in circumstances where he needs to assert a continuing property interest in his goods? a) Register the rights under section 859A of the Companies Act 2006 b) Ensure that the retention of title clause is carefully drafted and incorporated into the contract of sale c) Ensure that it is brought to the attention of the buyer before the contract is made d) Nothing Question 9 Chapter 5. Where will one find the statutory provision relating to exemption clauses for contracts for the sale of goods that are supplied with a service? a) The Supply of Goods and Services Act 1982 b) This is dealt with at common law c) Section 7 of the Unfair Contract Terms Act 1977 d) These terms can never be excluded Question 10 Chapter 5. Are core terms covered by the Unfair Terms in Consumer Contracts Regulations 1999? a) Yes, unless they have been individually negotiated. b) Yes, unless they seek to exclude or limit liability. c) Yes d) No Question 11 Chapter 6. Which one of the following statements is correct? a) Neither section 6 nor section 7 of the Sale of Goods Act 1979 applies to unascertained goods nor to goods that were ascertained after the contract was made. b) Both sections 6 and 7 of the Sale of Goods Act 1979 apply to unascertained goods as well as to goods that were ascertained after the contract was made. c) Section 6 but not section 7 of the Sale of Goods Act 1979 applies to unascertained goods as well as to goods that were ascertained after the contract was made. d) Section 7 but not section 6 of the Sale of Goods Act 1979 applies to unascertained goods as well as to goods that were ascertained after the contract was made. Question 12 Chapter 6. Which party can be at fault for section 7 of the Sale of Goods Act 1979 to apply? a) The buyer but not the seller b) The seller but not the buyer c) Either party d) Neither party Question 13 Chapter 7. Which one of the following statements best reflects the correct position when an exception to the nemo dat principle apples? a) The goods revert to the original owner. b) The goods are sold and the proceeds divided between all innocent parties. c) The original owner of the goods loses his title in favour of the purchaser who would have lost out had the exception not applied. d) The court decides. Question 14 Chapter 7. What is a mercantile agent? a) A mercantile agent having in the customary course of his business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods. b) Any person who acts as agent with the authority of the principal. c) Any person who acts as agent with the principal's express authority. d) Any person who acts as agent with the principal's express or apparent authority. Question 15 Chapter 8. Section 28 of the Sale of Gods Act 1979 sets out the requirements of delivery and payment. Which comes first? a) The buyer's obligation to pay always comes before the seller's obligation to deliver. b) Where the buyer is a consumer, payment and delivery are concurrent conditions. Where the buyer is not a consumer, the parties are free to make whatever arrangements they wish. c) They are concurrent conditions unless the parties have agreed otherwise. d) Whichever is reasonable in all the circumstances. Question 16 Chapter 8. Is the buyer bound to accept delivery of the goods by instalments? a) Yes. b) Yes provided the remainder of the goods follow within a reasonable time. c) Not unless otherwise agreed. d) Depends on whether the seller has sold the goods in the course of a business. Question 17 Chapter 9. Apart from taking actual possession of the goods, how can the unpaid seller stop the goods in transit? a) By informing the buyer that he must not accept delivery of the goods. b) By obtaining an order of the court. c) By giving notice of his claim to the carrier who has possession of the goods. d) By giving notice of his claim to the buyer's sub-buyer. Question 18 Chapter 9. When will the unpaid seller be entitled to commence an action against the buyer for non-acceptance of the goods? a) If he wrongfully neglects or refuses to pay for the goods. b) If he wrongfully neglects or refuses to accept the goods. c) If he wrongfully neglects or refuses to accept and pay for the goods. d) If he wrongfully neglects or refuses to accept the goods after the seller has made at least two separate attempts at delivery. Question 19 Chapter 10. In relation to Question 4, when will the goods not conform to the contract of sale? a) Whenever they are proved to be defective. b) If there is, in relation to the goods, a breach of an express term of the contract or a term implied by sections 12, 13, 14 or 15 of the Sale of Goods Act 1979. c) If there is, in relation to the goods, a breach of an express term of the contract or a term implied by sections 13, 14 or 15 of the Sale of Goods Act 1979. d) If there is, in relation to the goods, a breach of a term implied by sections 13, 14 or 15 of the Sale of Goods Act 1979. Question 20 Chapter 10. Which of the following remedies is not a remedy available under the Consumer Rights Act 2015? a) A short-term right to reject b) A right to have the goods repaired or replaced c) A right to have the purchase priced reduced (and keep the goods) d) A right to dispose of the goods Question 21 Chapter 11. Which one of the following statements is correct as to which of the Consumer Credit Acts of 1974 and 2006 are in force today? a) 1974 b) They both are c) 2006 d) Neither Question 22 Chapter 11. Which one of the following was not added as a category of exempt agreement by the Consumer Credit Act 2006? a) Businesses b) Charities c) High net worth debtors and hirers d) Investment properties Question 23 Chapter 12. If an agent carries out an act in the name of a principal for which he was not authorised, what steps, if any, can the principal take to save the act? a) Nothing. If the act was not authorised, it cannot be saved. b) He may seek the third party's consent for the transaction to proceed. c) He may ratify the act. d) He may obtain an order of the court to affirm the act. Question 24 Chapter 12. Is it possible for an undisclosed principal to ratify an act? a) Only if the agent authorises it b) Only if the court authorises it c) Yes d) No Question 25 Chapter 13. Where an agent has apparent authority to make a contract for a disclosed principal, who may enforce it and against whom? a) The principal may enforce the agreement against the agent but the agent may not enforce it against the principal. b) The principal cannot enforce the contract against the third party but the third party may enforce it against the principal. c) The principal cannot enforce the contract against the third party unless he ratifies it, but the third party may enforce it against the principal. Question 26 Chapter 13. Does an agent have the right to be remunerated by the principal? a) Yes, provided there is a term in the agency agreement to this effect and the agent acts within his authority (or the principal has ratified an agent's unlawful act). b) Yes, provided there is a term in the agency agreement to this effect. c) Yes, even in the absence of a term in the agency agreement to this effect.