Wen Purchased an Automobile from Nick for $10,000

question 32

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. The bank is not entitled to seize the automobile, because it had not given Wen notice of its claim against the vehicle before Wen purchased it.

---

Definitions:

Market Price

The existing cost at which an asset or service is being offered for buying or selling in the market.

American Put Option

An option contract giving the holder the right to sell an asset at a specified price at any time before the expiration date.

Expiration Date

The specific date on which an options or futures contract becomes void and the holder must settle their position by either selling or exercising the contract.

Indefinite Future

A period without a specified end time, often used in planning or forecasting where the exact timeline is unknown.