Wen Purchased an Automobile from Nick for $10,000

question 24

True/False

Wen purchased an automobile from Nick for $10,000. Unknown to Wen, Nick 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, Nick defaulted on the loan, and the bank discovered that Wen was in possession of the automobile. Nick is liable to Wen for breach of warranty of title, if the bank should seize the automobile.

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Definitions:

Conscious Decision

A decision made with full awareness and deliberate thought, often involving consideration of potential consequences and alternatives.

Voluntary

An action or decision made based on an individual's own will or choice without external coercion.

Automatic Response

A reaction or response that is performed without conscious thought, often as a result of innate or learned behavior.

Voluntary Action

An action that is performed with conscious control, as opposed to reflexive or automatic actions.