Chapter 7 Multiple choice questions

. Which one of the following statements best reflects the correct position when an exception to the nemo dat principle applies?

The goods revert to the original owner.

The goods are sold, and the proceeds divided between all innocent parties.

The original owner of the goods loses his title in favour of the purchaser who would have lost out had the exception not applied.

The court decides.

. Does section 21(1) of the Sale of Goods Act 1979 cover sales and/or agreements to sell?

It depends on the circumstances of the case

Both sales and agreements to sell

Only agreements to sell

Only sales

. What is a mercantile agent?

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.

Any person who acts as agent with the authority of the principal.

Any person who acts as agent with the principal's express authority.

Any person who acts as agent with the principal's express or apparent authority.

. Upon which party is the burden of proving whether or not the third-party purchaser acted in good faith?

The original owner

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.

The party bringing the claim

It will depend on the facts of the case

. When will a seller be in possession of the goods after sale for the purposes of section 24 of the Sale of Goods Act 1979?

Where he manages to obtain possession of the goods following the original sale, provided he does not act dishonestly.

Where he manages to obtain possession of the goods following the original sale, provided he does so with the consent of the original buyer.

Where he remains, without interruption, in physical possession of the goods.

Where he acts as seller of the original goods to any subsequent purchaser.

. Will the exception under section s 25 of the Sale of Goods Act 1979 (sale by a buyer in possession after sale) apply where the first buyer acquires the goods on hire purchase?

Yes, provided he acquires the goods from a seller who sells them in course of a business.

Yes, provided he acquires the goods from a mercantile agent.

Yes

No

. When does section 27 of the Hire Purchase Act 1964 operate?

In the case of goods acquired by hire purchase.

In the case of a motor vehicle acquired under a hire purchase or conditional sale agreement.

In the case of goods that were originally purchased and subsequently acquired by hire purchase.

It doesn't. It has been repealed.

. In Shogun Finance Ltd v Hudson [2003] UKHL 62, why couldn't Mr Hudson rely on section 27 of the Hire Purchase Act 1964 to acquire good title of the vehicle?

Because the agreement was voidable and had not at the time been avoided

Because he hadn't paid the price in full

Because he purchased it from a fraudster

Because the agreement was void for mistake, which meant that the rouge was not a seller in possession of the vehicle under a hire purchase agreement

. Which Act repealed section 22 of the Sale of Goods Act 1979?

Supply of Goods and Services Act 1982

Sale and Supply of Goods Act 1994

Sale of Goods (Amendment) Act 1994

None. It has not been repealed.

. In what circumstances can section 21(2) of the Sale of Goods Act 1979 be used?

It cannot. It has been repealed.

In various miscellaneous situations where there exists a special power of sale.

In any case where the court deems it just and equitable.

When a party cannot succeed under one of the other nemo dat exceptions and it would be unfair to leave him without a remedy.

Chapter 7 Multiple choice questions

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