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CA Foundation Sale of Goods — Unpaid Seller — practice questions

Explore 55 free Sale of Goods — Unpaid Seller questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Sale of Goods — Unpaid Seller questions and exercises with answers

Showing questions 1–30 of 55.

Under Section 46, the rights of an unpaid seller against the goods (where property has passed) are:Read the answer and worked solution →The unpaid seller's lien under Section 47 is:Read the answer and worked solution →An unpaid seller who has obtained a court decree for the price:Read the answer and worked solution →All of the following are conditions for stoppage in transit EXCEPT:Read the answer and worked solution →Under Section 51, goods are deemed to be in transit until:Read the answer and worked solution →Under Section 52, stoppage in transit is effected by:Read the answer and worked solution →Under Section 54, where the goods are of a perishable nature, the unpaid seller may resell them:Read the answer and worked solution →When is a seller deemed unpaid under the Act?Read the answer and worked solution →A seller accepts a cheque as conditional payment and the bank dishonours it. The seller is:Read the answer and worked solution →Who is treated as a seller for these rights?Read the answer and worked solution →Which of these is a right an unpaid seller has by implication of law?Read the answer and worked solution →The unpaid seller's right of stopping goods in transit arises on:Read the answer and worked solution →Can lien be claimed after ownership passes to the buyer?Read the answer and worked solution →If ownership has not passed, the seller may:Read the answer and worked solution →Credit term has expired. Seller in possession may:Read the answer and worked solution →The seller's lien is a right to retain goods until the buyer makes:Read the answer and worked solution →Sale had no credit stipulation. Seller in possession may:Read the answer and worked solution →Buyer turns insolvent during the credit term. The seller:Read the answer and worked solution →Can a seller use his lien if he holds the goods as bailee for the buyer?Read the answer and worked solution →After part delivery, the unpaid seller's lien on the remaining goods:Read the answer and worked solution →Seller delivering to a carrier loses lien unless he:Read the answer and worked solution →Which event terminates the unpaid seller's lien?Read the answer and worked solution →Besides delivery to a carrier and the buyer's possession, a lien also ends by:Read the answer and worked solution →Does a decree for the price end the lien?Read the answer and worked solution →Stoppage in transit means the unpaid seller may:Read the answer and worked solution →Lien needs the seller's possession. Stoppage in transit needs the goods to be:Read the answer and worked solution →Buyer solvent but defaulted; goods with carrier. Stop them?Read the answer and worked solution →Goods are deemed to be in course of transit from the time they are:Read the answer and worked solution →Goods stay in transit until the buyer or his agent:Read the answer and worked solution →The buyer takes delivery before the goods reach the appointed destination. Transit is:Read the answer and worked solution →

Worked practice questions

Under Section 46, the rights of an unpaid seller against the goods (where property has passed) are:

  1. Only a suit for damages
  2. Only a suit for price
  3. Lien, stoppage in transit, and re-sale
  4. Only rescission
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Correct answer: C. Lien, stoppage in transit, and re-sale

Section 46 gives the unpaid seller a lien, a right of stoppage in transit (on the buyer's insolvency), and a limited right of re-sale.

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The unpaid seller's lien under Section 47 is:

  1. A possessory right to retain the goods until the price is paid or tendered
  2. A right to damages
  3. A right to resell immediately
  4. A charge surviving loss of possession
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Correct answer: A. A possessory right to retain the goods until the price is paid or tendered

The seller's lien is possessory: the right to retain possession of the goods until payment or tender of the price.

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An unpaid seller who has obtained a court decree for the price:

  1. Must immediately resell
  2. Loses his lien on the goods
  3. Does not lose his lien merely by reason of the decree
  4. Loses the right of stoppage
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Correct answer: C. Does not lose his lien merely by reason of the decree

The proviso to the lien rules states that obtaining a decree for the price does not, by itself, deprive the unpaid seller of his lien.

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