Billy stops at a yard sale and looks for old musical equipment.He finds an amplifier that he has been looking for.Billy believes it is worth a lot more money than the $50 the owner is asking for.Billy asks the owner whether or not the amplifier is in good working condition.The owner tells him that he knows nothing about the quality of the amplifier and is not prepared to comment further.Billy purchases the amplifier for $50.Later he finds out that it is stolen from a nearby music store and did not belong to the owner at the time he purchased it.Billy's action for recovery of his money against the owner will

Question

Quizplus · Accepted Answer

The owner breached an implied term as to title since he did not have rightful ownership of the amplifier when he sold it to Billy. Billy can therefore recover his money from the owner. The caveat emptor principle applies to situations where the buyer is assumed to have the responsibility to inspect and evaluate the quality of the item they are purchasing. In this case, however, the issue is not about the quality but rather the ownership of the item. The fact that the owner did not comment on the quality of the amplifier is irrelevant. The possibility of a reward from the music store is not guaranteed and therefore not relevant to the legal action. Finally, the fact that Billy only learned of the problem after the purchase is not relevant since the issue is about the ownership of the item and not about any defects that may have been present.

Billy Stops at a Yard Sale and Looks for Old