Wen Purchased an Automobile from Nick for $10,000

question 24

True/False

Wen purchased an automobile from Nick for $10,000. Unknown to Wen, Nick had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Nick defaulted on the loan, and the bank discovered that Wen was in possession of the automobile. Nick is liable to Wen for breach of warranty of title, if the bank should seize the automobile.

---

Definitions:

Finished Goods Inventory

The stock of completed products ready for sale, representing one of the final stages in the production process.

Sales Forecast

An estimate of future sales, often based on historical data, current market trends, and forward-looking economic indicators, used for planning and decision-making purposes.

Production Units

The measure of output from a production process, with each unit representing a completed item.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery, buildings, and vehicles.