Asked by
Ashanta Campbell
on Dec 16, 2024
Verified
John bought a car for $5000. Shortly afterwards, a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car. In which of the following circumstances will John be least likely to recover what he is owed?
A) If the seller told John that the car was free and clear of any encumbrances even though John didn't ask
B) If the seller told John that the car was free and clear of any encumbrances after John asked
C) If neither John nor the seller said anything about whether the car was free and clear of encumbrances
D) If John forgot to check the registry for liens or encumbrances
E) If the seller can no longer be located
Security Interest
A legal claim on assets granted to a creditor to secure a loan, providing the creditor rights to the collateral if the debtor defaults.
Encumbrances
Legal claims or liens on a property or asset that may affect the title or restrict the owner's ability to use the property freely.
Bailiff
An official who performs certain actions under legal authority, such as executing writs, serving legal documents, or enforcing court orders and judgments.
- Understand the legal accountabilities and rights of actors in sales agreements, such as purchasers, vendors, manufacturers, and agents.
- Analyze the role and limitations of the Sale of Goods Act concerning negotiation and title transfer.
Verified Answer
ES
Learning Objectives
- Understand the legal accountabilities and rights of actors in sales agreements, such as purchasers, vendors, manufacturers, and agents.
- Analyze the role and limitations of the Sale of Goods Act concerning negotiation and title transfer.