Alex Sees Mona's Ring, and He Thinks It Is Very

question 34

Multiple Choice

Alex sees Mona's ring, and he thinks it is very valuable. He uses physical duress to cause her to give him the ring, and he quickly sells it to unsuspecting Hanna's Antique Jewelry Shop for $5,000. A month later, Mona discovers her ring on sale at Hanna's. Can Mona get the ring back?

• A) Yes, since a true owner can always recover her own property.
• B) Yes, since Alex had voidable title to the ring.
• C) Yes, since Alex had void title to the ring.
• D) No, since Hanna was a good faith purchaser for value.

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Definitions:

Long-term Goals

Objectives or plans that are intended to be achieved over an extended period, typically exceeding one year.

Fixed Asset

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Useful Life

The period over which an asset is expected to be used by an entity, or its lifespan for accounting purposes.

Residual Value

The estimated value of a fixed asset at the end of its useful life.