Ralph Purchases a Car from a Minor and Subsequently Sells

question 71

Multiple Choice

Ralph purchases a car from a minor and subsequently sells it to Jack,another adult who had no reason to know of the previous transaction and who paid full value for the car.Which of the following best describes this situation?

• A) Ralph had good title and Jack gets good title.
• B) Ralph had good title and Jack gets voidable title.
• C) Ralph had voidable title and Jack gets good title.
• D) Ralph had voidable title and Jack gets voidable title.

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Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.

Issuer

An entity, such as a corporation or government, that develops and offers securities for sale to investors to raise capital.

Issued

Pertains to securities or other financial instruments that have been created and offered for sale to investors by a corporation or government entity.

Cash Received

The total amount of cash that an entity collects during a specific period, from various sources including sales, financing, or investments.