class 2 Flashcards

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1
Q

where does the notion of caveat emptor (buyer beware) come from? what is the rule about?
in the Hop related case, why did the plaintiff lose.
Until 1856, in Scotland, a seller guaranteed a buyer against all *. but in the same year, the law was changed so that if the seller did not know that the goods were defective then the buyer had no recourse against him unless there was *.
Next, in 19th Century, even if you do not have knowledge, you may be still liable.
Which year UK’s SGA passed

A

CL;a buyer has a remedy only if there’s an express warranty.
the plaintiff lost because he had an opportunity to inspect the quality of hops and he should have insisted upon an express warantty.
latent defects
an express wuaranty

1893.

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2
Q

true or false?
A.the case of Junes v Bright (1892) is the origin of the s19 of NSW Sale of Goods Act.
B. Fair trading Acts replicate many provisions in the TPA.
C. SGAs in states are no longer identifcal to UK SGA.
D. the statutory implied term in TPA protects all the buyers.
E: TPA: gives consumer right of action nto just against seller but also against the manufacturers of the goods
F: under SGA, a buyer may be able to recover from the party who financed the purchase of the goods .
G> SGA concerns with safety of the goods.
H: under TPA, the liability for goods squarely rests on seller.

A

D is incorrect; only protect buyers who is consumers. by contrast, SGA deals with all transactions between buyers and sellers.
E: correct: Pt V Div 2A.

F incorrect, under TPA s73, a consumer
G: no TPA:

H: wrong, squarely on manufacturers.

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3
Q

thre are essentially two regimes for liability of goods, what are they? the first one is basically to overcome * problem. the second one is a * regime?

A

First, concern with ensuring the buyer gets what the buyer bargained for. (liability rests on seller). privity.
the second regime is a statutory tort regime, concerns with the safety of the goods.

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4
Q

the first and second regimes could be found in both SGA and TPA. is it correct?

A

no, the second regime can only be found in TPA

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5
Q

what are the three requirements for goods imposed by SGA?

A

(1) goods corresponding with the descirption that was applied to them,
(2) goods are fit for a particular puprose,
(3) goods are of merchantable quality.

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6
Q

Does liability regime (first regime) under TPA create contractual relationship between the buyer and the manufacturer?
under TPA: a manufacturer will be liable just becdause goods are not safe, correct?
buyer and seller relationship is not important for this type of actions. correct?

A

No it only creates a right of compensation from manufacturers.
note that also in SGA, same right is created.
no. the liabiliyt of the manufacturer for defective goods is to a person who is injured by or suffers loss because of unsafe goods.
yes.

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7
Q

in Leeks v FXC Corporation (2002), Finn J indicates there’s a distinction between * and *:
He also cited Zaravinos, which said that the rationale behind Div 2A TPA is what?
A deeming provision may result in two manufacturers for the purpose of the proceeding. correct?
are s74A(3) and (4) mutually exclusive?

A

deemed manufacturer and actual manufacturer
manufacturers rather than retailers should bear the liabiilty for defects in goods.
Yes. a possible scenario would be a foreign manufacturer is a deemed manufacturer by virtue of s74A(3) while the importer also a deemed manufacturer by virtue of s74A(4). TPA contains a scheme of concurrent liability?

No.

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8
Q

which secdtion of TPA defines Consumer?what are the two tiers of the definition of consumer in TPA?
what are the prescribed amount?
what does the exclusion relate to? Both service and goods?

A

s4B. first tier: the price; if price is not met, then for personal domestic or household use or consumption or the goods consited of a commercial road vehicle (1)(a)(i)and (ii) ;(b) for service.
(2) $40,000

Only goods not service; the exclusion is related to if the purchaser acquires the goods for resupply or for transforming them in production or manufacture he or she is not a consumer.

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9
Q

s 62 of SGA 1923 (NSW) defines “consumer sale”?
In this Part, “consumer sale” means a sale of goods (other than *) by seller in the course of a business where the goods
(a) are of a kind commonly bought for * or *
(b) are sold to a person who does not buy or hold himself or herself out as buying them in the course of business

A

A sale by auction,

priate use or consumption; and

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10
Q

sometimes, court may conclude with confidence in the absence of evidence as to actual use, that the nature of particular goods is such that they are (not) of a kind ordinarily acquired for personal use. correct?

A

P756Yes, in Crago v Multiquip

see Carpet Call: Carpet normally for domestic use, even its bought by a business.

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11
Q

who bears the burden of the proof that P is or is not a consumer when the price is below $40,000 and the service is not of a ‘personal, domestic or household ‘ nautre.

A

the defenant. s4B(3) provides it shall be assumed that the person is a conusmer, unless the contrary is established.
also see Seeley International Pty Ltd v Cintro [2002] P756

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12
Q

supply of aircon, each priced at 848, in total worth 94527 in value, aircons to be used in a motel. The brochure for the parciular model contained a photo of the aircons used in domestic and small office or commercial settings. is the buyer consumer?

A

Yes, see Q11 P 757. the air cons are goods of a kind ordinarily acquired for personal domestic or household use or consumption.

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13
Q

Q: Service of forklift drive from time to time A entered into contracts with B, B supply to A; whether A is the consumer. the aggregated value exceeding 4,0000 but the value of the particular agreement not. is A a consumer under TPA?

A

A: yes see Q12. P 757.
The court held that A is entitled to s4B(3) presumption that the agreements were separate and could not be aggregated for calculating the price of the service.

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14
Q

s4B definition of consumer : an objective test is adopted based on the nature of the goods, not the purpose for which they are acquired. correct?

A

Yes, goods of th ekind “ordinarily” used for …indicates so.

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15
Q

Give an example why under SGA,whether or not a buyer can be classified as a consumer makes a difference.

A

waiting for answers

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16
Q

TPA does not require supply or representation to a consumer (within TPA Pt V Div 1). correct?

A

yes, by contrast, in SGA s62(b)

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17
Q

SGA permits the exclusion of liability in commercial sales as well as consumer sales. correct?

A

No. SGA permits the exclusion of liability in commercial sales but not for most parts of consumer sales. By contrast, TPA prohibits the exclusion of liabiliy in consumer sales.

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18
Q

S68 of TPA makes void any contractual term which excluds, * or * the provisions of * of or the terms of *

A

restricts modifies
Div2
s75A

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19
Q

Note that TPA s68A which permits the limitation of liability in the supply of business goods in certain circumstances ie ? also particular type of service?

A

when the supply is of goods or services not for personal , domestic or household use, under s40,000 and not for resupply.
recreational service.

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20
Q

Does s16(3) SGA say that if proerty passes the breach of condition must be treated as a breach of warranty thus confining the buyer to damages. assume they are the same, does it mean the term in question change character and become a warranty for all purpcoses, and in particulear the exclusion of liability?

A

no., Its about where a contract of sale is not severable and the buyer has accepted the goods or part thereof, the breach of any condition to be fulfilled by the seller

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21
Q

the key fact of the case renders the plaintiffs disentitled to higher right (treat the contract as repudiated) is what?

A

the plaintiffs resold the giant

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22
Q

In the sainfoin case: the key fact of the case renders the plaintiffs disentitled to higher right (treat the contract as repudiated) is what?

A

in Wallis Son & Wells v Pratt & Haynes [1910] 2 K B 1003: the plaintiffs resold the giant

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23
Q

the concept of intermeiate term or innominate term derives from which case? it was affirmed in the context of contracts for sale of goods in whih case?

A

Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962]; The Hansa Nord [1975]

24
Q

The Hansa Nord [1975] concerns which term?which the court said it is similar to what term? if the first term is breached in the context of a CIF contract as to whether the damage was done before shipment or took place after shipment.- in the latter case the buyer has a claim against buyer?

A

shipment in good condition; fair average quality.

No, it does not have a claim against the buyer, only against the insurer.

25
Q

TPA and FTA include an adddtiohnal implied term with respect to the provision of services.

A

Yes

26
Q
Q: which of the following terms are implied into contract by SGA, TPA and FTA?
- title and quiet posession,
Correspondence with description, 
Fitness for purpose, mechantable quality
Correspondence with sample
A

A: all of them.

27
Q

Q:What are the terms of title and quiet possession are about?

A

A: designed to ensure that the buyer receive good title to the goods and is able to enjoy the goods free from interference from the seller and from third party

28
Q

Q: s 17 SGA: Implied undertaking as to title etc absolute?
s17(1) an implied condition on the part of * that in the case of a sale the seller has a right to sell the goods, and that in the case of * ,the seller will have a right to sell the goods at the time when *,

A

A; No, “unless the circumstances of the contract are such to show a different intention”
the seller; an agreement to sell;the property is to pass

29
Q

Q: s17 SGA:
(2) an implied * that the buyer shall have and enjoy * of the goods,

(3) an implied * that the goods shall be free from any * or * in favour of * not declared or known to the buyer *or *when the contract is made.
A

A: warranty; quiet possession

Warranty; charge;encumbrance; any third party; before; at the time

30
Q

Q: what is the provision in TPA and FTA equivalent to s17 of SGA

A

A: s69(1) TPA and s 40O of FTA

31
Q

Q: can the implied term concerning title and quiet possesion be excluded in a consumer sale under SGA? What about TPA and FTA

A

A: Yes, it can since under s64(1)- renders only mentioning ss 18-20
In contrast, TPA s68 and FTA: s40M No.

32
Q

Q; s68 of TPA: 68 Application of provisions not to be excluded or modified
s 68(1) renders void a clause of contract that purports to exclude which of the following?
(a) the application of all or any of the provisions of this Division [Division 2—Conditions and warranties in consumer transactions under Part V—Consumer protection]
(b) the exercise of a right conferred by such a provision;

                 (c) any liability of the corporation for breach of a condition or warranty implied by such a provision; or
                 (d) the application of section 75A;
A

all of them.

33
Q

Q: Which section of SGA deals with “when condition to be treated as warranty”

A

A: s 16

34
Q

Q; in Rowland v Divall [1923] [UK case], what does the plaintiff Rowland rely on to require the full purchase amount?

A

A: total failure of consideration –> rescind the contract? [not sure about this]

35
Q

Q: In Rowland v Divall [1923] [UK case}: what are the two main arguments run by the defendant (Divall) that the plaintiff cannot rescind the contract? Which provision of the SGA the defendant purported to rely on (the NSW equivalent) for the first argument? About the second argument,what does Scrutton LJ say?

A

A: Defendants argues that

First, the plaintiff cannot return the car, which means that the status quo cannot be restored. [Scrutton LJ basically says the rule does not apply because the defendant had no right to sell the car at all]. no obligation on the part of the buyer to return to car. [Atkin LJ]

Second, a condition has changed to a warranty the car has been used by the plaintiff for four months which means the plaintiff has elected to treat a breach of a condition as the breach of a warranty. The plaintiff cannot reject the goods and is only entitled to damages. [A: s16 SGA of NSW, particularly (3) ) [addressed by Bankes LJ]

36
Q

Q; Why the cases cited by the defendants failed?why has the buyer not lost the right to terminate the contract and recover the price according to s16(3) SGA?

A

A; In all the cases the defendant cited, the plaintiff got what they bargained for; here the plaintiff did not get any portion of what he bargained for. So s16(30 does not apply.

37
Q

Q: s 16 (3): Where a contract of sale is not *and the buyer has accepted the goods or *thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty and not as a ground for * and unless *.

A

A: severable; part; rejecting the goods; treating the contract as repudiated,there be a term of the contract express or implied to that effect.

38
Q

Butterworth v Kingsway Motors [1954]:
Q: Under the hire-purchase agreement, until Rudoph exercised the option, she had no proprietary interest in the car. her rights and obligations as hirer were not be assignable or chargeable by her.

A

A: Both correct. The vehicle remained the property of Bowmaker Ltd and she had no right or interest in it other than that of hire under the agreement. The agreement was personal to her

39
Q

Butterworth v Kingsway Motors [1954]:
Q: What is the correct order of the purchasers and which is/are car dealer?
A.Kingsway Motors- Hayton-Butterworth- Kennedy
B.Hayton-Kennedy-Kingsway Motors- Butterworth
C.Kennedy- Hayton- Kingsway Motors- Butterworth
D.Kennedy- Kingsway Motors- Hayton- - Butterworth

Were all the sellers acted in good faith and believed they had a right to sell the vehicle? Which two transactions happen on the same day?

A

A; C. Yes, they were in good faith.

Kennedy- Hayton- Kingsway Motors-

40
Q

Q: how long did Mr Butterworth used the vehicle?

A

A: less than 12 months. During the period, he was registered as the onwer of the car.

41
Q

Butterworth v Kingsway Motors [1954]:

Q: what were the two options Mr Butterworth was given by Bowmaker?

A

A: 1) delivery up possession of the the car to them.

acquire title to the vehicle for 175.14.

42
Q

Butterworth v Kingsway Motors [1954]:
Q: On which question, the judge did not answer but was doubtful about the plaintiff’s position? Did plaintiff argues that the fact of Rudoph’s payment and Bowmaker’s release of the car to the plaintiff altered the position?

A

A; even if the letter was not written, the position was still the same. The plaintiff said no.

43
Q

Q: The present ownership of the car? On whom?

A

A: the defendants. [kingway]

44
Q

Q: The defendants are entitled to claim only damages against Mr Hayton?

A

A: yes, condition changes to warranty= the amount is the purchase amount reducing the car value

45
Q

Q: What day is the value of the car to be assessed? So what’s the amount?

A

A; the day when the defendants gained the title. July 1952. 475= 1275-800

46
Q

Q: What about Mr Hayton against Mr Kennedy and Mr Kennedy against Rudolph? What is slightly complicated about Mr Hayton against Mr Kennedy?

A

A: 475

Mr Kennedy knew that at the time of the contract of sale, Mr Hayton was buying for his own use and not for re-sale

47
Q

Transfer of personal property by one party (the bailor) in the possession, but not *, of another party (the bailee) for a *. Such transfer is made under an express or implied contract (called bailment contract or contract of bailment) that the property will be * to the bailor on completion of that purpose, provided the bailee has no * on the goods (such as for non-payment of its charges). The bailee is under an obligation to take * of the property placed under its possession. Bailment contracts are a common occurrence in everyday life: giving clothes to a launderer, leaving car with an auto mechanic, handing over cash or other valuable to a bank, etc.

A

ownership; particular purpose
redelivered
lien
reasonable care

48
Q

what is a barter contract?
When can personalty become real property?
what does this mean?“Nemo dat quod non habet”?
are Acceptance of an offer v acceptance of performance different?
What is a chattel personal? as per Colonial Bank v Whinney (1885) 30 Ch D 261 at 280–3 .
In Otis Elevator Company Pty Ltd v Girvan (Qld) Pty Ltd,
Preppin Pty Ltd & Ors: who wins?

A

no money changes hands;
(Fixtures)
no one gives what they don’t have
I guess so
Any form of personal property, whether tangible or intangible, other than a chattel real:
Ambrose J. ordered the safe return of
unfixed Otis equipment held on a construction site of the

49
Q

True or fase?
A.Chattels personal are classified as either choses in possession or choses in action
B. “Thing in action”: “ is the same as a chose in action
C. “Property” means special property.

A

A: true (items capable of being the subject of actual possession); (items that cannot be physically possessed but are recoverable by a law suit).
B true. being a thing recoverable by action as contrasted with a chose in possession being (in turn) an expression used to describe all personal rights of property which can be claimed by taking physical possession: Halsbury Laws of England 4th ed. Vol.6 para.1, Jowitt’s Dictionary of English Law 2nd ed. p.338.” - Watson v National Companies & Securities Commission [1988] WAR 332 per Brinsden J
C. false. the general property in goods and not merely a special property.”

50
Q

True or false:
A. under ACL, computer software is goods (whic section)
B. The definition is an inclusive definition. It supplements the ordinary meaning of the term

C. SOAG assumes freedom of contract while ACL does not.
D. consumer sale can not be in the form of auction.

A

A. true. 2Definitions
goodsincludes:
(a) ships, aircraft and other vehicles; and
(b) animals, including fish; and
(c) minerals, trees and crops, whether on, under or attached to land or not; and
(d) gas and electricity; and
(e) computer software; and
(f) second-hand goods; and
(g) any component part of, or accessory to, goods.
B. true seeASX Operations Pty Ltd v Pont Data Australia Pty Ltd (No1)(1990) 27 FCR 460;97 ALR 513 [PFA 350]
C. correct.
D. under SOGA yes. not necesary under ACL though.

51
Q

what are authorities for the following statements?
A. If the contract, when performed, results in the sale of a chattel, then it will be a contract for the sale of goods even if performance involves the exercise of skill and labour.
B. the test is: is it materials or skill for which payment is substantially being made?
C. The contract to make and install built-in office furniture is not a sale of goods?
C. the sale of a sculpture is a sale of goods?

A

Lee v Griffin121 ER 716;(1861) 1 B & S 272: [PFA 365]
RobinsonvGraves[1935] 1 KB 579: [PFA 367]

Brooks Robinson Pty Ltd v Rothfield [1951] VLR 405 [PFA 366]
(obiter): Deta Nominees v Viscount Plastic Products [1979] VR 167

52
Q

17 Implied undertaking as to *etc

In a contract of sale, unless the circumstances of the contract are such as to show *, there is:

(1) an implied * on the part of the seller that in the case of * the seller has *, and that in the case of an * the seller will  at the time when *, 
(2) an implied* that the buyer shall have and enjoy * of the goods, 
(3) an implied warranty that the goods shall be free from any * or * in favour of any *not declared or known to the buyer before or * when the contract is made.
A
title;
a different intention
condition
a sale
a right to sell the goods
agreement to sell
have a right to sell the goods
the property is to pass

warranty
quiet possession

charge
encumbrance
third party
at the time

53
Q

Parkinson v Lee (1802) 2 East 314; 102 ER 889 (PFA749)
Hop case: hops with a shorter shelf life, Victor sells 5 packets to Quentin Brewer, who discovered that they werw defective. Quentin Brewer sues Sam the Grower and Victor Vendor .
who won?

A

Quentin Brewer lost because he did not, but could have, insisted on an express warranty that the hops would last long enough to make beer from them.

54
Q

Q: False or true:

A.In Microbeads v Vinhurst Road Markings Ltd [1975] 1 All ER 529, The court held that there was a breach of both s12(1) and (2).
B.There’s no breach of s17(1) if the seller does not have the right to sell yet passed good title to the buyer

A

A.s12(2)-quiet possession- applies to not only present but also future time.
B.Incorrect. There may be a breach- as per s17;
s26 Sale by person not the owner.
s27 Sale under voidable title.

55
Q

Q: In Microbeads v Vinhurst Road Markings Ltd [1975] 1 All ER 529:

A right to sell under s12(1) include both a right to * but also a right to confer on the buyer the * of the goods. In respect of s12(1), Microbeads argues for two points: * and *, both of which were rejected by the court. For NSW SOGA: which section is equivalent to UK’s s12(1)?

A

A: pass the property; undisturbed possession
Only present not future defective title; Paramount title
S17(1)