Liz buys a Miata from Nate's Mazda, paying with a check that is later dishonored. Liz offers to sell the car to Ogden for cash. With respect to this offer, Liz's title to the car is
A) valid.
B) voidable.
C) void.
D) good.

Question

Quizplus · Accepted Answer

Liz's title to the car is voidable because the check used for payment was dishonored. This means that the sale from Nate's Mazda to Liz was not valid, making Liz's title to the car questionable. While Liz can still sell the car to Ogden, Ogden may not have clear title to the car if the issue with the dishonored check is not resolved.

Liz Buys a Miata from Nate's Mazda, Paying with a Check