If You Want to Buy a Car from a Private

question 56

Multiple Choice

If you want to buy a car from a private party (other than a dealer) ,which of the following is false?

• A) If you request a search, and the central registry states that the car is free and clear of liens and encumbrances, then title is clear.
• B) If the seller tells you that the car is free and clear, and two months later a properly registered chattel mortgagee claims a right to the car, you could lose the car.
• C) Even if both the seller and the central registry indicate to you that the car's title is clear, you could still lose it to a third party.
• D) If the seller indicates to you that the title is clear, but after the sale the car is seized by someone with the legal right to do so, you could still sue the seller.
• E) If the seller makes no representations whatsoever about the car, and the car is seized by a creditor, you can still sue the seller because he had an obligation to deliver good title.

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Definitions:

Long Run

A time frame where all production elements and expenses can change, enabling companies to modify all resources.

Optimum Efficiency

The most favorable condition where resources are used in the best possible way to achieve maximum productivity and economic benefits.

Perfect Competitor

An individual or company within a perfectly competitive market that cannot influence the market price and must accept the prevailing market price.

Long Run

In economics, a period in which all inputs and outputs can be varied, allowing for the adjustment of all factors of production.