Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

تمرين 4

Williams agreed to sell his car to an individual named Hodge and accepted a cashier's check from Hodge as payment. He signed the certificate of title as seller, but did not indicate on the certificate that Hodge was the purchaser, and delivered the document and car to Hodge. The next day, Hodge, representing himself to be Williams, offered to sell the car to Charles Evans BMW, Inc. When a price was agreed upon, Hodge presented to Evans BMW the certificate of title bearing Williams's signature as seller and Evans BMW gave Hodge a check that named Williams as payee. The check was cashed at a local bank when Hodge produced a Kentucky driver's license bearing the same number as had been issued to Williams. After the car had been purchased by Evans BMW from Hodge, Williams was notified that the cashier's check he had accepted from Hodge was a forgery. By the time Evans BMW was made aware of the fact that it had not actually purchased the car from Williams, but rather from Hodge representing himself to be Williams, it had already resold the car. At the direction of the local police officials, the car and the certificate of title were returned to Evans BMW and the purchase price refunded. Evans BMW then initiated an action against Williams seeking to establish that it held good title to the car. Did Evans BMW obtain good title to the car when it purchased it from Hodge, a person who had obtained title through criminal fraud by giving the original owner a check that was subsequently dishonored?