Question 1

a) Ace Manufacturing Ltd agreed to manufacture and sell 5000 chairs to a convention centre. The contract contained detailed specifications for the chairs, and provided that the purchase price of $200 000 would be paid in two equal instalments: one half when the contract was signed and one half when the convention centre was notified that the chairs were ready to be picked up. The contract said nothing about when ownership of the chairs would transfer to the buyer. The convention centre paid the first installment when the contract was signed. The chairs were manufactured by Ace and were in Ace's warehouse when a serious fire destroyed the warehouse and all the chairs. Ace had not yet notified the convention centre that the chairs were ready for pick up, because the person who ordinarily makes such phone calls had been away from work due to an illness. Ace has demanded payment in full for the chairs from the convention centre. The convention centre has refused to pay the balance and has asked for a refund of the first installment it paid.

Applying the relevant and correct principle(s) of law discussed in the sales of goods contract, discuss whether title to the chairs has passed from Ace to convention centre and who bears the risk in the given situation.

(b) Bobrisky purchased a laptop from Procomp Industries Inc.'s online store for business use. After taking delivery, he discovered that the laptop had been preloaded with an adware program called ConsumerTrack (CT), a program which intercepts the user's secure internet connections and scans the user's web traffic to inject unauthorized advertisements into the user's web browser without the user's knowledge or consent. The adware also affects the computer's performance by increasing power consumption, decreasing battery life, hogging bandwidth, and wasting memory. The program also generally slows the laptop's operations although it does not prevent Bobrisky from running the programs he installed on the laptop or from using the machine for web surfing and other functions. The purchase contract states "the parties agree that warranties or conditions contained in the Sale of Goods Act do not apply to this transaction"

Applying the relevant and correct principle(s) of law discussed in the sales of goods contract advice Bobrisky on the propriety of the purchase contract. Discuss whether any of the provisions of the Sale of Goods Act will be of help to Bobrisky.