On May 1,S Sells Goods to B

question 36

Essay

On May 1,S sells goods to B.B immediately resells the goods to C,who buys in good faith and pays cash.On May 2,S learns that B was insolvent when it accepted the goods.On May 3,therefore,S demands return of the goods from B.B says: "Sorry about that,but I sold them to C.A seller's recovery rights under section 2-702(2)are inferior to the rights of a good faith purchase for value,and C evidently qualifies as such a purchaser. C." Can S recover the goods from C?
No,S cannot recover the goods from

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Definitions:

Statement of Cashflow

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Preferred Shares

A type of stock that provides a fixed dividend and has priority over common stock in the event of a company's liquidation.

Financing Activities

Transactions and events where a business raises funds from debt and equity sources, reflected in the cash flow statement.

Issue for Cash

The process of a company issuing its shares to investors in exchange for cash as a method of raising capital.