MGMT-2007EL Chapter Notes - Chapter 16: Consumer Protection, Implied Warranty, Caveat Emptor

• School: Laurentian
• Department: Marketing and Management
• Course: MGMT-2007EL
• Professor: Andrew Little

Document Summary

The sale of goods act adopts the ideology of freedom of contract and applies it to the area of sales the statute assumes buyers and sellers are in positions of equal strength and have access to the same information. For reasons of commercial efficacy, the sga has limited the application of the rule caveat emptor ( let the buyer beware ) by implying certain terms into the contract . It is not restricted to retail and consumer transactions, and is also applied to commercial transactions. Where automobile repairs are involved the act will apply to the parts component of the bill. The sga applies only when it can be demonstrated that the parties intended that the actual possession and property of the goods would transfer to the buyer. The act will not apply when goods are used to secure a loan except where that security is actually part of the sales transaction.