Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on the loan, and the bank discovered that Doe was in possession of the automobile. The bank is not entitled to seize the automobile, because it had not given Doe notice of its claim against the vehicle before Doe purchased it. True False

Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on the loan, and the bank discovered that Doe was in possession of the automobile. The bank is not entitled to seize the automobile, because it had not given Doe notice of its claim against the vehicle before Doe purchased it. True False

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter13: Contracts And Sales:performance And Remedies

Section: Chapter Questions

Problem 9QAP

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