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Diagnostic Test
Return to Commercial Law Concentrate 5e Resources
Diagnostic Test
Quiz Content
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What is meant by the term "specific goods"?
Specific
goods are goods that are identified and agreed upon at the time a contract of sale is made.
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Specific goods are goods that have been specifically made to fulfil the buyer's order.
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Specific goods are goods that have a specific (rather than a general) use.
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Specific goods are goods that the seller has had to order specifically for the buyer.
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incorrect
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In which statute will you find the implied terms for contracts for the supply of a service?
Sale of Goods Act 1979
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incorrect
Sale of Goods Act 1979, but only if the service is incidental to the supply of goods
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incorrect
Supply of Goods and Services Act 1982
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None of the above. A contract for the supply of a service is governed by common law
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Where will you find the definition of "sale by description"?
In section 13 of the Sale of Goods Act 1979
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In section 14 of the Sale of Goods Act 1979
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In section 61(1) of the Sale of Goods Act 1979
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It is not defined in the Sale of Goods Act 1979. The common law has given guidance as to its meaning
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Which one of the following statements is correct?
The terms implied in the Sale of Goods Act 1979 apply only where the seller sells the goods in the course of a business.
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incorrect
The terms implied in the Sale of Goods Act 1979 apply irrespective of whether the seller sells the goods in the course of a business.
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incorrect
Sections 14(2) and (3) apply only where the seller sells the goods in the course of a business. Sections 12, 13 and 15 apply irrespective of the status of the seller.
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The terms implied in the Sale of Goods Act 1979 apply only where the buyer is a consumer.
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Which one of the following statements correctly reflects the meaning of "in the course of a business" as used in the Sale of Goods Act 1979?
A sale by a business is a sale in the course of a business.
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The purchase must be an integral part of the business.
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The goods purchased are of a kind which the business has bought with some degree of regularity.
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The goods must have been bought with the intention of selling them on for a profit.
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In the case of the transfer of property in unascertained goods, it doesn't matter in which order the statutory rules are applied provided they are applied correctly. Is this statement correct?
No
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incorrect
Yes
correct
incorrect
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When do goods become ascertained?
As soon as the contract is made
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When the goods are identified as
the
goods to be used in the performance of the contract
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incorrect
As soon as they have been delivered to the buyer
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As soon as the buyer pays for them
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incorrect
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The rules relating to which party bears the risk in the goods depends on whether the buyer deals as a consumer. Is this statement correct?
Yes
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No
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When does the risk in the goods transfer to the consumer buyer?
When they are paid for
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When they are dispatched for delivery
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When they come into the physical possession of the consumer
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When the contract is made
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What is the difference (if any) between a simple retention of title clause and an all-liabilities or all-monies clause?
There is no difference. They are merely different terms for the same thing.
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An all-liabilities or all-monies clause is one that has been expressly agreed by the parties. A retention of title clause is one that is implied by statute.
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Retention of title clauses have been expressly approved by the Court of Appeal in
Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd
[1976] 1 WLR 676 and therefore will be enforced. All-liabilities or all-monies clauses have had no such approval and are unlikely to be accepted by the courts.
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An all-liabilities or all-monies clause goes further than a simple retention of title clause and provides that a buyer will not get ownership in the goods bought until all monies or liabilities owed to the seller have been satisfied.
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What does section 19(1) of the Sale of Goods Act 1979 allow a seller to do?
Recover the goods if the buyer fails to pay for them on time
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Recover the goods if the buyer becomes insolvent
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Reserve the right of disposal of the goods until the buyer pays for the goods
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Reserve the right of disposal of the goods until certain conditions are fulfilled
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incorrect
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What does section 19(1) of the Sale of Goods Act 1979 allow a seller to do?
Recover the goods if the buyer fails to pay for them on time
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Recover the goods if the buyer becomes insolvent
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incorrect
Reserve the right of disposal of the goods until the buyer pays for the goods
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incorrect
Reserve the right of disposal of the goods until certain conditions are fulfilled
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incorrect
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Why are retention of title clauses not generally regarded as security interests, which are void if not registered?
Because they are, in the main, not security interests and do not need to be registered
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Because security interests never need registering
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incorrect
Because the Court of Appeal said so in
Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd
[1976] 1 WLR 676
correct
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They are security interests and are void if not registered
correct
incorrect
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Which one of the following statements is correct?
Whether an exemption clause is likely to be incorporated into the contract will depend on whether or not the recipient had reasonable notice of it.
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Whether an exemption clause is likely to be incorporated into the contract will depend on whether or not the recipient had expressly agreed to its inclusion.
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Whether an exemption clause is likely to be incorporated into the contract will depend on whether or not the contract is in writing.
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Whether an exemption clause is likely to be incorporated into the contract will depend on the seriousness of the breach and possibly the extent of the loss sustained.
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The word "reasonableness" is often used in connection with exemption clauses. Which party has the burden of establishing reasonableness?
The party claiming that the term satisfies the requirement of reasonableness must show that it does
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This is a matter for the trial judge
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The party claiming that the term does not satisfy the requirement of reasonableness must show that it does not
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Depends of the facts of the case
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When will the goods be deemed to have perished for the purposes of the Sale of Goods Act 1979?
Only if they have been destroyed.
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Either if they have been destroyed or if they become significantly altered so that, for commercial purposes, they can no longer be said to be the same goods that were the subject of the contract.
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If the reasonable person would consider them to have perished.
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If the buyer would be justified in rejecting them.
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What would the likely result be in the following situation? A buyer contracts with a seller to purchase a specific portion of a crop and performance becomes impossible owing to a failure of the crop without any default on the part of the seller.
The seller will not be liable to the buyer in damages.
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The seller will be liable to the buyer in damages.
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The seller will only be liable to the buyer in damages if the goods have already been paid for.
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The seller will not be liable to the buyer in damages although he will be obliged to deliver the actual amount that has been harvested.
correct
incorrect
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Upon which party is the burden of proving whether or not the third party purchaser acted in good faith?
The original owner
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The third party purchaser must prove that he acted in good faith. This is the rule for all of the exceptions to the nemo dat rule except section 23 where the original owner must prove that the third party purchaser did not act in good faith.
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The party bringing the claim
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It will depend on the facts of the case
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In what circumstances can section 21(2) of the Sale of Goods Act 1979 be used?
It cannot. It has been repealed.
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In various miscellaneous situations where there exists a special power of sale.
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In any case where the court deems it just and equitable.
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When a party cannot succeed under one of the other
nemo dat
exceptions and it would be unfair to leave him without a remedy.
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It is the buyer's duty to accept and to pay for the goods. What is the corresponding duty of the seller?
To make the goods available for collection by the buyer
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To deliver the goods according to the terms of the contract
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To deliver the goods to the buyer's home address
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To deliver the goods to the buyer's business address
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incorrect
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What may a buyer do if the seller delivers a quantity of goods less than he contracted to sell?
Either reject them or accept the short delivery and pay pro-rata for the goods that have been delivered.
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incorrect
Either reject or accept them. If he accepts them, he must pay the full contract price (including the goods that were not delivered).
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He must reject them.
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He must accept them.
correct
incorrect
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Will a buyer be deemed to have accepted the goods if he agrees to their repair?
Yes, provided the goods are specific goods
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No, provided the goods are specific goods
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No
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Yes
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When will the unpaid seller of goods not lose his lien or right of retention in respect of the goods?
When the buyer or the buyer's sub-buyer lawfully obtains possession of the goods.
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When he delivers the goods to a carrier or other bailee or custodier for the purpose of transmission to the buyer without reserving the right of disposal of the goods.
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When the buyer or his agent lawfully obtains possession of the goods.
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By waiver of the lien or right of retention.
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incorrect
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What is payment on a "day certain"?
Where the parties have agreed that payment will be made on a particular date.
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Where the parties have agreed that payment will be made on a particular date and make time for payment of the essence.
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Where the parties have agreed that payment will be made on a particular date irrespective of whether the goods have been delivered to the buyer.
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Where the parties have agreed that payment will be made upon the occurrence of a specific event rather than on a particular date.
correct
incorrect
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Which one of the following statements is correct in relation to the Sale and Supply of Goods to Consumers Regulations 2002?
The rights contained in the Regulations have superseded those in the Sale of Goods Act 1979.
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They provide additional rights to consumers in addition to those provided in the Sale of Goods Act 1979.
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They provide alternative rights to those contained in the Sale of Goods Act 1979. The consumer must choose either the Regulations or the Act.
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incorrect
The rights contained in the Regulation are identical to those contained in the Sale of Goods Act 1979.
correct
incorrect
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Which one of the following statements is correct?
The remedies contained in section 48A(2) of the Sale of Goods Act 1979 may be sought only in the same order they are listed in that section.
correct
incorrect
The remedies contained in section 48A(2) of the Sale of Goods Act 1979 may be sought in any order as the buyer wishes.
correct
incorrect
The remedies contained in section 48A(2) of the Sale of Goods Act 1979 may be applied in any order as the seller wishes.
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incorrect
The remedies contained in section 48A(2) of the Sale of Goods Act 1979 will be applied in the order the court directs.
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incorrect
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Is it likely that the decision in
Re Moore and Landauer
[1921] 2 KB 519 would be followed today?
No
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incorrect
Yes
correct
incorrect
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Does the Consumer Credit Act 1974 apply to parties who are provided with credit in the course of a business?
Yes
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No
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Does section 75 of the Consumer Credit Act 1974 provide any protection to debtors in respect of foreign transactions?
Yes, in every case
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No
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Not without the agreement of the creditor
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Yes, provided that the credit agreement is a UK credit agreement
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incorrect
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With actual authority, how is the authority actually given?
Express or implied
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Express
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Implied
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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?
Nothing. If the act was not authorised, it cannot be saved.
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He may seek the third party's consent for the transaction to proceed.
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He may ratify the act.
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He may obtain an order of the court to affirm the act.
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incorrect
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Where the agent is acting on behalf of a disclosed principal and the third party settles with the agent, will he be deemed to have settled with the principal?
Yes
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Only if the agent had either actual or apparent authority to accept monies on behalf of the principal
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No
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Does an agent have the right to be indemnified by his principal for expenses, losses and liabilities?
Not unless there is an express term to this effect in the agency agreement.
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Yes, in respect of those that he reasonably incurs whilst executing his duties as agent within the scope of his actual authority. This is the case unless there is an express term in the agency agreement to the contrary.
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Yes, in respect of those that he reasonably incurs whilst executing his duties as agent within the scope of his actual or apparent authority. This is the case unless there is an express term in the agency agreement to the contrary.
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incorrect
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