Tilda Purchases an Automobile from Ronston

question 52

Multiple Choice

Tilda purchases an automobile from Ronston.At the time of sale, Ronston tells Tilda that the car has had only one previous owner and has been driven only 25, 000 miles.Tilda, relying on these statements, purchases the car.She pays 10 percent down and signs a promissory note to pay the remainder of the purchase price, with interest, in fifteen equal monthly installments.Ronston transfers the note to Patty.Then Tilda discovers that the car has actually had three previous owners and has been driven 250, 000 miles.If Patricia is an HDC, which of the following is the legal outcome?

• A)Tilda must pay Patty; find recourse with Ronston.
• B)Patty must pay Tilda; find recourse with Ronston.
• C)Patty pays no one; indorsement is considered void.
• D)Tilda can rescind the note; refuse to pay Patty.

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Definitions:

Selling Price

The price at which a product or service is sold to customers, determining the revenue generated from sales activities.

Note Payable

A written promise to pay a specified sum of money, usually with interest, by a certain date.

Financing Activities

Transactions related to raising capital and paying back investors, including issuing equity and debt as well as dividend payments.

Cash Flow Statement

A report summarizing the total cash entering a company from operational activities and external investments, alongside the total cash spent on business operations and investments within a specific timeframe.