P-40.1 - Consumer Protection Act

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36. A merchant transferring the ownership of goods to a consumer by way of a contract must free such goods from every charge or encumbrance in favour of a third person, or declare the existence of such charge or encumbrance at the time of the sale. He is bound to discharge the goods of every surety-bond, even declared, unless the consumer has assumed the debt so secured.
1978, c. 9, s. 36.