Alf Bought a Car from Mr

question 42

Multiple Choice

Alf bought a car from Mr. Wojchu for $10,000. Shortly afterwards, a bailiff, acting for a lender with a security interest in the car with payments in default, seized the car. The financing statement for the security interest had been properly registered in time. Alf wants to sue Mr. Wojchu. Which of the following correctly sets out his legal position?

• A) Alf will win. Mr. Wojchu has failed to deliver clear title.
• B) Alf will win. The goods were not of merchantable quality.
• C) Wojchu will lose. Risk follows title.
• D) Alf will lose. Caveat emptor applies.
• E) Alf will lose. It was his obligation to search the title and he failed to.

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Definitions:

Repaid

The action of paying back borrowed money to a lender, either in installments or as a lump sum.

Loans

Sums of money borrowed that are expected to be paid back with interest, often under agreed-upon terms between lenders and borrowers.

Simple Interest

Interest earned or paid on the original principal only of a deposit or loan, without compounding.

Loan Repaid

The act of paying back borrowed money to the lender.