Sales Quiz No. 4

In which instances is implied warranty not applicable? Choose all that apply.

• Sale of brand new articles

• Sale of second hand articles

• Sale of goods, when there is an agreement between the parties that implied warranty is not applicable

• Sale of goods which require transportation to be delivered

What do hidden defects refer to?

• Pertain only to those defects that make the object of sale unfit for use which it was intended

• Pertain only to those defects wherein low quality materials were used when the seller expressly represented he used high quality materials

• Petain to those physical defects such as dents and scratches on the goods

• Pertain to those defects which render the goods unusable after the perfection of the sale

The action for rescission of the contract or reduction of the purchase price with respect to implied warranty against hidden defects prescribes within _.

• 6 months from the perfection of the contract

• 6 months from the delivery of the thing

• 6 months from the payment of the purchase price

• 6 months from the execution of the contract of sale

A buys Farmer Joe's pig. After payment and inspection, A discovered that the pig was inflicted with African Swine Flu (ASF). What is the status of the sale

• The sale is merely voidable since A's consent was vitiated.

• The sale is valid since Farmer Joe had no knowledge that his pic had ASF.

• The sale is void since the pig had a contagious disease.

• The sale is unenforceable since no permit was secured to sell the pig.

A sells his two Shih Tzus to B. Upon purchase, B discovered that one of the Shih Tzus had rabies, B tried to vaccinate both dogs but they died 3 days from purchase. Rule.

• A is liable since the dogs died 3 days from purchase and the rabies existed when the contract was perfected

• A is not liable since the dogs died 3 days from purchase and the rabies existed when the contract was perfected

A sells his cows to B. They executed a deed of sale and registered the same sale with the municipality. What is the status of the sale?

• Void, since it was not made in a public instrument

• Unenforceable, since it was not made in a public instrument

• Rescissible, since it was not made in a public instrument

• Valid, since the sale was registered with the municipality. Notarization is merely for convenience.

A bought Shop B's, without removing the tag. She made minor alterations the dress. She wants to return the dress. May she do so?

• No, because she impliedly accepted the dress, hence, the sale is already consummated

• Yes, because acceptance is not a bar to rescission of a contract of sale

A bought B's land on an installment basis. However, when B occupied the land, the neighbors stole from him. Does B have the right to suspend payment?

• No, because A already delivered the land

• No, because the neighbors are merely an act of trespass

• No, because B has already made partial payments

A sells the portion of his land to B, a farmer who has been his tenant for 10 years. Due to financial difficulties, A permitted B to pay in installments. May A demand for recission under the Maceda Law if B fails to pay?

• Yes, provided A also returns the cash surrender value of the payments on the property

• No, the Maceda Law does not apply

• No, the proper remedy is to collect damages

A sold his property to B. They stipulated that the sale is automatically cancelled when B fails to pay on March 27, 2023. May A sell his property to another if B fails to pay?

• No, he must secure a final decision from the court to rescind the first sale

• No, he must send a demand letter

• No, he should send a demand letter and have it notarized

• Yes, the automatic rescission clause is already sufficient