Sometimes conditional sale contracts exist between the manufacturer and the retailer. How does the consumer know she is getting clear title to the goods purchased?
A) She doesn't know for sure, that's wherein lies the problem.
B) In this case the Mercantile Agency Rule would be suspended.
C) The federal Personal Property Security Act guarantees it to consumers.
D) Because if she didn't, it would fly in the face of consumer expectations.
E) By provincial statute-buyer acquires good title if the goods are resold in the ordinary course of business.

Question

Quizplus · Accepted Answer

In this situation, the consumer can have clear title to the goods purchased if the provincial statute allows the buyer to acquire good title if the goods are resold in the ordinary course of business. Therefore, option E is the best choice. Options A, B, and D are incorrect because they do not provide a solution to the problem. Option C is incorrect because the federal Personal Property Security Act does not necessarily guarantee clear title in this specific situation.

Sometimes Conditional Sale Contracts Exist Between the Manufacturer and the Retailer