Quiz on the Commercial Sale of Goods Act of Bhutan 2001

What is the primary purpose of the Commercial Sale of Goods Act of Bhutan?

• To regulate personal loans

• To provide rules for the sale of goods in commerce

• To establish tax regulations

• To govern real estate transactions

What does the term 'sale' refer to in the context of the Act?

• An agreement to barter goods

• The passing of title in goods from seller to buyer for a price

• A gift of goods

• A loan of goods

What is the difference between a 'sale' and an 'agreement to sale'?

• Sale is informal; agreement to sale is formal

• Sale is executed; agreement to sale is executory

• Sale is a gift; agreement to sale is a transaction

• Sale requires no payment; agreement to sale requires payment

What is required for a contract of sale exceeding Nu.100?

• No requirements are necessary

• A written contract signed by the party against whom enforcement is sought

• A written contract signed by both parties

• A verbal agreement

When does the title of goods pass to the buyer?

• When the buyer inspects the goods

• When the seller completes physical delivery of the goods

• When the seller ships the goods

• When the buyer pays the full price

What is an implied warranty of 'merchantability'?

• A promise that goods will be repaired if defective

• A promise that goods are suitable for their usual use

• A guarantee of the goods' resale value

• A warranty that goods will be delivered on time

What happens if the seller's goods do not conform to the contract?

• The buyer must accept the goods

• The seller can sue the buyer

• The buyer can reject the goods and the risk remains with the seller

• The buyer loses the right to claim damages

What does 'C.I.F.' stand for in shipping terms?

• Cost, Insurance, and Freight

• Cost, Interest, and Fees

• Cargo, Insurance, and Freight

• Cost, Insurance, and Fees

What is the effect of a breach of warranty?

• The buyer can reject the contract

• The buyer loses all rights

• The buyer can claim damages

• The seller can resell the goods

What is the seller's remedy if the buyer breaches the contract?

• The seller must refund the buyer

• The seller can only claim damages

• The seller can sue for the price of the goods

• The seller can cancel the contract