Used Car Problems

Used Car Problems.Marcy purchased a used car from ABC Motors.Six months later,the police seized the car from Marcy because it was a stolen vehicle.Marcy asked for her money back from ABC Motors.The manager there told her that the car was not stolen; that even if it were stolen,ABC Motors acted in good faith with no knowledge of a theft; therefore,no refund was legally required.ABC Motors had also sold a used car to Frank,who wrote a bad check for the car and left town but not before he sold the car to Betty,who paid a fair price for the car believing that Frank had all rights to sell it.ABC Motors asked Betty to return the car,but she told ABC to forget it.Assuming that the thief who stole the car sold and delivered it to ABC Motors without the knowledge of any representative of ABC Motors of the theft,what kind of title did ABC Motors have?

A) Void
B) Valid
C) Voidable,so long as ABC Motors can prove that it had never been charged with dealing in stolen merchandise
D) Voidable,so long as ABC Motors can prove that none of its representatives were negligent in disregarding evidence of the theft at any time prior to its resale to Marcy
E) Voidable,so long as no manager of ABC Motors had made an affirmative representation that the car was not stolen