Chapter 9 Multiple choice questions

. Which one of the following situations does not reflect the position of an unpaid seller?

When the seller extends credit to the buyer but the buyer does not pay by the time allowed.

When the whole of the price has not been paid.

When the whole of the price has not been tendered.

When a negotiable instrument has been received as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument.

. Which one of the following is not a right of the unpaid seller against the goods?

Where the property in the goods has not passed to the buyer, a right of withholding delivery similar to and co-extensive with his rights of lien or retention and stoppage in transit where the property has passed to the buyer.

A right of stopping the goods in transit after the seller has parted with the possession of them.

A right of resale, limited by the Sale of Goods Act 1979.

A lien on the goods or right to retain them for the price while the seller is in possession of them.

. 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.

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.

When the buyer or his agent lawfully obtains possession of the goods.

By waiver of the lien or right of retention.

. Apart from taking actual possession of the goods, how can the unpaid seller stop the goods in transit?

By informing the buyer that he must not accept delivery of the goods.

By obtaining an order of the court.

By giving notice of his claim to the carrier who has possession of the goods.

By giving notice of his claim to the buyer's sub-buyer.

. If the goods are already in transit, what practical steps can the seller take to prevent their delivery?

Nothing. Once the goods are already in transit it is too late to prevent delivery.

Serve notice on the driver. Alternatively, he may serve notice on the driver's principal provided there is then sufficient time for the principal to communicate the notice to his driver before the delivery is made.

Take all reasonable and lawful steps to prevent the delivery from being made.

Notify the police who will intercept the delivery and prevent it from being made to the buyer.

. Apart from an action for the price, what other remedy does the unpaid seller have against the buyer for breach of contract?

Damages for non-acceptance of the goods

Damages for late payment

A claim in equity

None

. What is payment on a "day certain"?

Where the parties have agreed that payment will be made on a particular date.

Where the parties have agreed that payment will be made on a particular date and make time for payment of the essence.

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.

Where the parties have agreed that payment will be made upon the occurrence of a specific event rather than on a particular date.

. When will the unpaid seller be entitled to commence an action against the buyer for non-acceptance of the goods?

If he wrongfully neglects or refuses to pay for the goods.

If he wrongfully neglects or refuses to accept the goods.

If he wrongfully neglects or refuses to accept and pay for the goods.

If he wrongfully neglects or refuses to accept the goods after the seller has made at least two separate attempts at delivery.

. Will the seller ever be entitled to claim special damages to compensate him for any loss arising out of any special circumstances?

Yes, provided that the parties were aware of the special circumstances at the time the contract was made.

Yes, irrespective of whether or not the parties were aware of the special circumstances at the time the contract was made.

No

Not unless the seller is also able to invoke another provision in the Sale of Goods Act 1979.

. Does the market price rule contained in section 50(3) of the Sale of Goods Act 1979 apply to unique goods?

Depends on the circumstances of the case

Only if the seller sells the goods in the course of a business

No

Yes

Chapter 9 Multiple choice questions

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