Sale of Goods Case

Grocers' Supplies Ltd. is a corporation that distributes food and grocery products to other suppliers and retailers, as part of the supply chain in the international food products industry. In October, Grocers' enters into an agreement to sell 3000 tins of condensed milk to Triple A Distributors Corp. Grocers' standard form contract of sale includes the exclusion clause that "the seller makes no representations regarding fitness for purpose or merchantable quality."

Grocers' stipulates that it will have the right to deliver any one of three brands of condensed milk in order to fulfill the sale contract. Grocers' warehouse contains a large quantity of tins of condensed milk, and on November 1, Grocers' employees load a shipment onto trucks and deliver 1000 tins of Freedom brand condensed milk and 2000 tins of Nissley brand condensed milk to Triple A.

Shortly thereafter, Triple A receives a letter from the solicitors for Nestl Corporation, stating that "Nissley" imitates the Nestl registered trademark and asks that Triple A not resell the tins of condensed milk. The letter also threatens to take legal proceedings against Triple A if it should do so. Triple A therefore signs an undertaking not to sell, advertise or offer for sale the Nissley condensed milk.

Triple A then unsuccessfully asks Grocers' to take the milk back, and it is left with 2000 tins of milk that it cannot sell. Triple A disposes of the milk.

Triple A Distributors Corp. sues Grocers' Supplies Ltd. under the Sale of Goods Act.

TheSale of Goods Actis legislation that applies to all kinds of sale transactions except for

Select one:

A.retail sales of a value less than $50

B.a barter arrangement where goods are traded for goods

C.the sale of crops still growing on land.

D.a conditional sale where the buyer pays for goods in installments.

Which statement best describes the purpose of provincialSale of Goodslegislation across Canada?

Select one:

A.The legislation is intended to protect consumers who are typically powerless, against big business.

B.The legislation adds implied terms into a contract of sale that are not expressly agreed to by the seller and purchaser.

C.The legislation requires product safety testing and reliability

D.The legislation governs door-to-door sales and provides a cooling-off period.

In this case, what implied condition or warranty has been breached by the seller, Grocers' Supplies Ltd.?

Select one:

A.The implied warranty that the buyer shall have quiet possession of the goods

B.The condition that goods are of merchantable quality

C.The implied condition that the goods delivered must match the description

D.The implied warranty that delivery will take place within a reasonable time

Which of the five rules regarding transfer of title to the goods applies to this case?

Select one:

A.Rule 5-title passes when in a contract for unascertained goods the seller unconditionally appropriates goods to the contract.

B.Rule 3-title passes when the seller weighs or measures the goods for the purpose of calculating price

C.Rule 4-title passes when the buyer communicates approval of goods sold on "sale or return."

D.Rule 2-title passes when the seller puts the goods into a deliverable state.

What potential remedies are available to Triple Aunder the legislationfor breach of an implied term by the seller?

Select one:

A.The buyer can obtain damages if a warranty is breached

B.The buyer can obtain the remedy of specific performance if either a warranty or condition are breached

C.The buyer is restricted to damages if a condition is breached

D.The buyer has the right of stoppage in transit upon learning of breach by the seller.

In this case, the seller attempted to exempt itself from liability through the use of an exclusion clause. Discuss whether the seller will be successful.

TheSale of Goods Actsare important pieces of provincial legislation. Do you think that most sellers and buyers across Canada are familiar with the provisions of this legislation? Explain