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Canadian Business & the Law
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Test Yourself
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CHAPTER 24
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1. Voluntary guidelines for use by both producers and users of goods are developed by
the common law
statute law
municipal regulations
the Canadian Standards Association
all of the above
2. The main objectives of laws regulating marketing practices include
to protect consumers from physical harm
to foster fair competition
to protect consumers from unfair selling practices
all of the above
none of the above
3. The Hazardous Products Act, which imposes legislative requirements on importers, advertisers, and vendors of certain products, is
a federal statute
a provincial statute
a municipal bylaw
a CSA guideline
none of the above
4. In the Sale of Goods Act, a warranty is
a commitment, similar to a guarantee, regarding the quality characteristics of tangible goods
the time period for which it is reasonable to expect tangible goods to last
an important term in a sale of goods contract
a less important term in a sale of goods contract
none of the above
5. In the Sale of Goods Act, "merchantable quality" means
reasonable quality, given the price paid
capable of being sold by a merchant
generally sold by a merchant
imported
domestically produced
6. The Canadian Code of Advertising Standards has been established by
federal legislation
provincial legislation
the Advertising Standards Council
the Canadian Standards Association
none of the above
7. If a Competition Bureau investigation has been conducted, the consequences of being found guilty of having engaged in false or misleading advertising can include
criminal charges
an order to halt the deceptive practices
an administrative penalty
all of the above
none of the above
8. Requirements imposed by the Competition Act regarding promotional contests do not include
disclosure of the number and approximate value of prizes
disclosure of the value of prizes distributed in earlier contests
disclosure of the geographic area in which the competition is being conducted
disclosure of the odds of winning
winner selection based on either random selection or skill
9. Jones is a travelling salesman. He visits Smith's Auto Sales Ltd. There, he explains that he needs a car for his work and describes the amount of driving involved, the type of roads travelled. Smith recommends a specific car and Jones buys it. The car proves to be totally inadequate to the job. Under the Sale of Goods Act, Smith's has committed
the tort of negligence
misleading advertising
breach of an implied condition
breach of an implied warranty
breach of an assurance
10. Jones bought a car from Smith. Unbeknownst to Jones, the car had a lien on it for $1,500. The $1,500 was owed to an auto body shop for work it had done on the car for Smith. Under the Sale of Goods Act, Smith has committed
the tort of negligence
misleading advertising
breach of an implied condition
breach of an implied warranty
breach of an assurance
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