16. Which of the following statement is NOT TRUE about a hire purchase agreement?

A. A hirer does not obtain legal ownership of the goods until the final payment is made.

B. It is a breach of the hire purchase agreement if a hirer sells the goods before completing the payment

C. The owner may keep the goods in his possession until the hirer completes the payment of the hire purchase

D. A hirer is legally bound to observe all the terms in the hire purchase agreement

17. Amara entered into a hire purchase agreement for a sewing machine, a vacuum cleaner, and a rice cooker from Senang Finance. The monthly instalment for each item is RM100. This month, Amara is only able to pay RM100 to Senang Finance and she wishes to pay for the sewing machine.

Which of the following describes the legal position in Amara's situation?

A. Amara has the right to choose which item she wishes to pay

B. Amara must obtain the consent of the owner on which item she has to pay

C. The owner has the right to choose which item Amara should pay

D. Amara must apply to the court for permission to choose which item she wishes

to pay

18. Salman entered into a hire purchase agreement for a car with the following description "Proton X70, automatic, white colour, leather seat cover". When the car was delivered, Salman found that the colour of the car was red and only the front seats had leather cover.

What action may Salman take against the owner in this situation?

A. Salman may repudiate the agreement

B. Salman may sue for damages

C. Salman may repudiate the agreement and sue for damages D. Salman cannot take any action against the owner

19. Which of the following are the rights given to a hirer after the repossession of goods by the owner?

i. The hirer may refuse to settle the default payment

ii. The hirer may pay the amount in default together with the costs of

repossession

iii. The hirer can regain possession of the goods after remedying the default

iv. The hirer may request the owner to sell the goods to a person introduced

by the hirer for cash at a price of not less than the estimated value of the goods

A. i, ii and iii

B. i, iii and iv C. ii, iii and iv D. i, ii, iii and iv

20. Awang entered into a hire purchase agreement with Syarikat Senang Beli for a car. The price of the car in the hire purchase agreement is RM88,674.00. Awang has failed to pay the last two successive instalments. Syarikat Senang Beli wishes to repossess the car. However, Awang has already paid more than RM70,000 to Syarikat Senang Beli.

Can Syarikat Senang Beli repossess the car?

A. Yes, because Awang has defaulted in two successive payments

B. Yes, because it is the right of an owner to repossess goods after a hirer has

defaulted in payment

C. No, because Awang has not defaulted in four successive payments

D. No, because the Hire Purchase Act 1967 does not allow direct repossession of

goods by the owner in this situation