Which of the Following Is False with Regard to the Implied

question 125

Multiple Choice

Which of the following is false with regard to the implied terms of the Sale of Goods Act?

• A) When you buy a car, and the contract speaks only of the car and the price, you are entitled to receive good title, to acquire quiet possession and a car free from any encumbrances (i.e., a claim by a bank).
• B) If you ordered a lamp from a catalogue but it did not match the description when you got it, the seller is in breach of a condition of the contract.
• C) If a buyer places an order for silk after seeing a sample of it, the order delivered must match the sample.
• D) The Act provides that the goods must be of "merchantable quality," and that means that the goods must be without flaw.
• E) The Act provides that the goods must be fit for purpose, but to have that protection, the buyer must be dealing with a seller who deals in goods of that kind.

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Definitions:

Conditional Sale Contract

A contract agreement where the sale is contingent upon fulfilling certain conditions or terms.

Compounded Monthly

The process by which interest is calculated on both the principal and the accumulated interest on a monthly basis.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often at retirement.

Ordinary Annuity

An ordinary annuity consists of identical payments that are made at the conclusion of successive periods for a specified duration.