John Bought a Car for $5000

question 98

Multiple Choice

John bought a car for $5000. Shortly afterwards, a bailiff acting for an unpaid security interest holder who had properly registered his financing statement seized the car. In which of the following circumstances will John be least likely to recover what he is owed?

• A) If the seller told John that the car was free and clear of any encumbrances even though John didn't ask
• B) If the seller told John that the car was free and clear of any encumbrances after John asked
• C) If neither John nor the seller said anything about whether the car was free and clear of encumbrances
• D) If John forgot to check the registry for liens or encumbrances
• E) If the seller can no longer be located

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