What must the bold as-is statement in a used vehicle contract say?

The car is not represented as roadworthy or sound

The car is roadworthy and sound, without further warranty

The car carries the manufacturer's original warranty only

The car will pass a safety inspection within thirty days

Under the Sale of Goods Act, what does merchantable quality ask of a used car?

Transportation for a reasonable period, with no hidden price-affecting defect

Freedom from any defect throughout the buyer's ownership

The make, model and year written on the contract

A passed safety inspection and registration in the buyer's name

A buyer cancels a signed deal; the dealer paid for inspection, advertising and storage. What is the dealer entitled to do about its costs?

Deduct its costs, return the balance, and bill any shortfall

Keep the whole deposit as a cancellation fee

Return the whole deposit and absorb the costs

Keep the whole deposit and bill the costs too

A customer asks for their trade-in back before any contract is signed. What must the dealer do?

Return it within thirty days of the request

Return it less an appraisal or reconditioning fee

Hold it until the customer buys something

What does the fitness for purpose condition ask of a vehicle a dealer sells?

It must suit the use the buyer described

It must have been inspected before the sale

It must come with a warranty of 90 days

It must come with a warranty of 30 days

Sale of Goods Act: practice quiz

Sale of Goods Act and warranties · 9 questions Free set

Question 1 of 9 Sale of Goods Act and warranties

What must the bold as-is statement in a used vehicle contract say?
- The car is roadworthy and sound, without further warranty
- The car is not represented as roadworthy or sound
- The car carries the manufacturer's original warranty only
- The car will pass a safety inspection within thirty days
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(6) The statement mentioned in paragraph 5 of subsection (2) is as follows:

Read section 40 in full

The statement prescribed by O. Reg. 333/08 says the vehicle is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. It represents nothing at all about condition, and goes on to warn that the vehicle may not be fit for use as a means of transportation and may not be registrable as it stands. Chapter 4 covers contract requirements.
Question 2 of 9 Sale of Goods Act and warranties

Where a dealer sells as-is to a retail customer, the dealer may also hand over a current safety certificate.
- True
- False
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(3) No registered motor vehicle dealer shall sell a used motor vehicle on an as-is basis to a purchaser who is not a registered motor vehicle dealer if a current safety standards certificate under the Highway Traffic Act has been issued for the vehicle. O. Reg. 333/08, s. 40 (3).

Read section 40 in full

O. Reg. 333/08 bars a dealer from selling a used vehicle on an as-is basis to a purchaser who is not a registered dealer where a current safety standards certificate has been issued for that vehicle, so on a retail sale it is certified or as-is, never both. The bar runs only to non-dealer purchasers, which leaves a sale between two registered dealers outside it. Chapter 4 covers contract requirements.
Question 3 of 9 Sale of Goods Act and warranties

Under the Sale of Goods Act, what does merchantable quality ask of a used car?
- Freedom from any defect throughout the buyer's ownership
- Transportation for a reasonable period, with no hidden price-affecting defect
- The make, model and year written on the contract
- A passed safety inspection and registration in the buyer's name
Merchantable quality is a sellability standard measured at the sale: the vehicle has to actually serve as transportation for a reasonable stretch of time, and a fault the buyer could not see that would have moved the price defeats it. It sets a floor on what the buyer gets, not a promise that nothing on the vehicle will ever fail. Chapter 16.02 covers the implied conditions of sale.
Question 4 of 9 Sale of Goods Act and warranties

A buyer cancels a signed deal; the dealer paid for inspection, advertising and storage. What is the dealer entitled to do about its costs?
- Deduct its costs, return the balance, and bill any shortfall
- Keep the whole deposit as a cancellation fee
- Return the whole deposit and absorb the costs
- Keep the whole deposit and bill the costs too
Where a buyer cancels a signed contract, the dealer may take its own costs out of the deposit and return the rest, and may ask the buyer to pay the difference where those costs run past the deposit. The deposit is money held against proven loss, so a dealer may neither keep it as a flat fee nor recover the same costs twice. Chapter 16.06 covers a customer who does not complete the sale.
Question 5 of 9 Sale of Goods Act and warranties

A buyer who signs a vehicle contract may still cancel within a cooling-off period by changing their mind.
- True
- False
Buying a vehicle from a dealer carries no cooling-off period, so a signed contract binds the buyer. A right to cancel arises only where the dealer has failed a legal obligation, and that is a cancellation right earned by the dealer's default rather than a period for changing one's mind. Chapter 16.06 covers a customer who does not complete the sale.
Question 6 of 9 Sale of Goods Act and warranties

A customer asks for their trade-in back before any contract is signed. What must the dealer do?
- Return it within thirty days of the request
- Return it less an appraisal or reconditioning fee
- Hold it until the customer buys something
- Return the car immediately
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

If a customer who is not a registered motor vehicle dealer gives a registered motor vehicle dealer a deposit or a motor vehicle as a trade-in before entering into a contract for the purchase or lease of a motor vehicle, then requests the return of the deposit or the vehicle being traded-in before entering into the contract, the dealer shall immediately return the deposit or the vehicle being traded-in, as the case may be, to the customer, even if,
(a) the dealer is not the dealer who sells or leases the vehicle being sold or leased to the customer; or
(b) the customer does not enter into a contract for the purchase or lease of a motor vehicle. O. Reg. 333/08, s. 38.

Read section 38 in full

Section 38 of O. Reg. 333/08 requires a dealer to immediately return the deposit or the vehicle being traded-in once a customer who is not a registered motor vehicle dealer asks for it back before entering into the contract, so the dealer may not hold it, delay the return or charge anything against it. Chapter 4 covers contract requirements.
Question 7 of 9 Sale of Goods Act and warranties

What does the fitness for purpose condition ask of a vehicle a dealer sells?
- It must suit the use the buyer described
- It must have been inspected before the sale
- It must come with a warranty of 90 days
- It must come with a warranty of 30 days
Fitness for purpose asks that the vehicle actually suit the use the buyer made known, so a truck bought to haul loads of gravel must be strong enough to do that work. 16.02 covers the three implied conditions.
Question 8 of 9 Sale of Goods Act and warranties

Implied conditions attach to a vehicle sale even where the contract never writes them in.
- True
- False
Merchantable quality, fitness for purpose and quiet possession are implied conditions of a vehicle sale, which means they attach by law and need no wording in the contract to take effect. 16.02 covers the three implied conditions.
Question 9 of 9 Sale of Goods Act and warranties

How long is the cooling-off period after a customer signs a contract to buy a vehicle?
- There is no cooling-off period
- 24 hours from signing
- 48 hours from signing
- 10 days from signing
Signing the contract binds the dealer and the customer alike to complete the deal, so no period runs in which the buyer may simply change their mind. 16.06 is where the rule sits, and the MVDA requires the contract to disclose that the sale is final.

Sale of Goods Act and warranties

What must the bold as-is statement in a used vehicle contract say?

Where a dealer sells as-is to a retail customer, the dealer may also hand over a current safety certificate.

Under the Sale of Goods Act, what does merchantable quality ask of a used car?

A buyer cancels a signed deal; the dealer paid for inspection, advertising and storage. What is the dealer entitled to do about its costs?

A buyer who signs a vehicle contract may still cancel within a cooling-off period by changing their mind.

A customer asks for their trade-in back before any contract is signed. What must the dealer do?

What does the fitness for purpose condition ask of a vehicle a dealer sells?

Implied conditions attach to a vehicle sale even where the contract never writes them in.

How long is the cooling-off period after a customer signs a contract to buy a vehicle?

9 questions here. 17 topics in all.