Sonny bought a computer from The Bad Guys on a conditional sales contract.Two months later Sonny sold the computer to Fred without mentioning it was not paid for.Can The Bad Guys recover the computer from Fred?

Question

Quizplus · Accepted Answer

In a conditional sales contract, the seller retains the right to the property until the buyer fulfills certain conditions, typically full payment. If the security interest in the computer is properly registered, The Bad Guys can recover the computer from Fred, even if Fred is an innocent third party, because their security interest gives them rights in the collateral that can be enforced against third parties.

Sonny Bought a Computer from the Bad Guys on a Conditional