Larry Larcenous Sells Used Autos at Larry Larcenous' Auto Land

question 13

Multiple Choice

Larry Larcenous sells used autos at Larry Larcenous' Auto Land. On April 1, Larry sells a used Lexus SC 430 hardtop convertible, with a 4.3-liter, 300-horsepower V8 with all-aluminum construction to Gerald Gullible. The sales price was only $45,000, a steal for such a fine automobile! Like all deals too good to be true, it turns out that this deal was also. The police stop Gary less than a week later because the car's original owner reported it stolen. The title Larry received when he originally bought the car is a fake. Obviously, Gary is upset and wants to get his money back. Larry counters that Gary cannot have his money back because Larry didn't know about that the car was stolen and he exercised due care in buying the car. Who wins?

• A) Gary, because Larry violated UCC § 2-312, warranty of title.
• B) Larry, because he exercised due care in purchasing the car the first time.
• C) Gary, but only if he can show that Larry is a merchant as defined by UCC § 2-104.
• D) Larry, because the UCC does not apply once a sale is final.

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Definitions:

U.S. Constitution

The foundational document of the United States, outlining the framework of government, its institutions, and the rights of its citizens.

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A state in the Pacific Northwest region of the United States, known for its diverse landscapes ranging from forests and mountains to farms and cities.

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