5.7 Assessment Questions

5.7 ASSESSMENT QUESTIONS

1. The terms implied in the contract of sale of good are bound between?

A. Partners B. Buyer and seller C. Hirer and owner D. Principal and third parties

2. The breach of implied warranty entitled the innocent party to _______________.

A. reject the goods only B. claim for damage only C. repudiate the contract only D. repudiate the contract and reject the good

3. Which of the following in NOT include in the contract of sale of goods?

A. Property B. Money C. Goods D. Service

4. Contract of sale of goods is a contract _______________.

A. wherein the seller lends the property in goods to buyer for free B. wherein the seller hires and agree to hire the property in goods to buyer for price C. wherein the seller transfers and agree to transfer the property in goods to buyer for free D. wherein the seller transfers and agree to transfer the property in goods to buyer for price

5. Choose the following item that is NOT considered as goods.

A. Timber B. Money C. Watch D. Chair

6. Which of the following considered as contract sale of good.

A. Anis agreed to sell her book to Lia for a price RM30 B. Anis agreed to rent her house to Lia for a price RM300 C. Anis agreed to sell her land to Lia for a price RM300,000 D. Anis agreed to exchange her old car with Lia for new motorcycle

7. Choose item that can be categorized as goods under the Sale of Goods Act 1957.

A. Milk, bread, chair and desk B. Tree, grass, house and building C. Money, book, printer and dress D. Dress, house, computer and ring

8. Which of the following is NOT an exemption of the transfer of ownership of goods on ‘Nemo dat quod non habet’

A. Estoppel B. Direct sales C. Sales by joint owner D. Sales by mercantile agents

9. A contract of sale is basically an offer to buy or sell goods for a price and the acceptance of such an offer. Price is a monetary consideration for the sale of goods. Price may be fixed in the following manner:

i. It may be fixed by the contract ii. It may be left to be fixed in manner agreed in the contract iii. It may be determined by the course of dealing between the parties iv. Where the price is not determined in any one of the aforesaid ways, the buyer must pay a reasonable price

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

10. Which of the following situations entitle the buyer to repudiate the contract of sale?

i. The goods do not correspond with the description ii. The seller does not have title of the goods iii. The goods are not in merchantable quality iv. The goods are unencumbered

A. i, ii and iii B. i, iii and iv C. ii, iii and iv D. All of the above

11. Siew Min bought fried rice from Café Matahari. After eating the fried rice, she was hospitalized for food poisoning. There was a breach of implied term here as ____________.

A. The goods must be of merchantable quality B. The goods must be fit for particular purpose C. The goods must correspond with the sample D. The goods must correspond with the description

12. The difference between a ‘sale’ and ‘agreement to sell’ is

A. the price of the goods B. the qualities of the goods to be supplied C. the quantities of the goods to be supplied D. the time when the property in goods is transferred to the buyer

13. Which of the following is NOT ‘goods’ under Sale of Goods Act 1957?

A. 10 tons of bricks B. 10 packs of nasi lemak C. 100 pieces of RM1 notes D. 1,000 sacks of tea leaves

14. “Caveat emptor” in relation to sale of goods means

A. let the seller beware B. let the buyer beware C. the seller is entitled to sell the goods D. the seller must be the owner of the goods

15. Which of the following is a sale of goods contract?

A. Ina agrees to sell her house to Jia B. Sellina agrees to sell her apartment to Noria C. Elisa bought a printer from Jonash for RM300 D. Rumi and Raysha agreed to exchange a bag for an umbrella

16. Section 27 of the Sale of Goods Act 1957 provide the Nemo Dat Quad Habet rule, which means ‘no one can give a better title than he has himself’. This means that if goods are bought from a person who is not the owner, and who does not sell them under the owner’s authority, the buyer does not acquire any title. However, this rule is subject to some exceptions. Briefly explain FOUR (4) exceptions to the Nemo Dat Quad Non Habet rule.

17. Jamal bought a car, Honda City from Zainal and has been using it for several months. Jamal was later discovered that Zainal did not have the legal rights to the car. The car is still property of Shahrul. Jamal had to give the car to Shahrul and claim the money that has been paid. Zainal refused to hand the money to Jamal.

i. Identify an issue arises on the situation. ii. Explain the relevant provision of the Sale of Goods Act 1957.

iii. Explain ONE (1) relevant case to support your answer briefly. iv. Conclude the issue.

18. Mimi bought a pair of jeans from Lady Jeans Sdn. Bhd. so that she can wear it for her birthday party. She wore the jeans and unfortunately, her skin becomes red and itchy. Mimi has to seek medical treatment. Advise Mimi whether she could commence a legal action against Lady Jeans Sdn. Bhd.

Based on the situation above, you are required to:

i. State an issue. ii. Explain the relevant provision of the Sale of Goods Act 1957. iii. Explain ONE (1) relevant case to support your answer. iv. Conclude the issue.