Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car, Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments, TinCar Autos discovers that Mona has the car, and repossesses the car from her.
-Which warranty breach can Mona assert to recover from Eliza?

Question

Quizplus · Accepted Answer

Mona can assert a breach of the warranty of no security interests because Eliza sold the car to Mona without disclosing the existing security interest held by TinCar Autos.

Eliza Buys a Car from TinCar Autos with a Warranty