Doe Purchased an Automobile from Jones for $1,000

question 7

Multiple Choice

Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on his loan, and the bank discovered that Doe was in possession of the automobile. Which of the following are true?

• A) The bank is not entitled to seize the automobile because it had not given Doe notice of its claim against the vehicle before Doe purchased it.
• B) The bank is not entitled to seize the automobile because Jones had not given notice to Doe of the bank's claim against the vehicle before Doe purchased it.
• C) Doe has a good title to the automobile because he purchased it as a bona fide purchaser, for value, without notice.
• D) Jones is liable to Doe for breach of implied condition of title should the bank seize the automobile.
• E) Jones is liable to Doe for breach of implied warranty of title should the bank seize the automobile.

Understand the application and limitations of the high-low method in cost estimation.

Learn about the significance of the least-squares regression method and its statistical reliability in cost estimation.

Know the structure of the contribution margin income statement and its use in classifying costs by behavior.

Understand the principles of activity-based costing (ABC) and its application in internal decision-making.

---

Definitions:

Innate Ability

Innate ability refers to natural talents or capabilities that an individual is born with, as opposed to skills developed through learning or experience.

Redundancy

The state of being not or no longer needed or useful, often referring to repetitive or unnecessary information or the elimination of jobs in a workforce.

Suspense

A state of mental uncertainty, excitement, or anxiety regarding the outcome of certain events or actions.

Pauses

Short periods of silence strategically used in speech to enhance understanding, create emphasis, or allow the listener to process information.