A warranty of title protects a buyer who-knowingly or unknowingly-buys goods that are subject to a creditor's security interest.

Question

Quizplus · Accepted Answer

A warranty of title protects a buyer from any claims of ownership by third parties, but does not protect against security interests or liens held by creditors. A buyer who buys goods subject to a creditor's security interest takes the goods subject to that interest and assumes the risk of the creditor foreclosing on the interest if the debt is not paid.

A Warranty of Title Protects a Buyer Who-Knowingly or Unknowingly-Buys