Alf bought a car from Mr. Wojchu for $10,000. Shortly afterwards, a bailiff, acting for a lender with a security interest in the car with payments in default, seized the car. The financing statement for the security interest had been properly registered in time. Alf wants to sue Mr. Wojchu. Which of the following correctly sets out his legal position?
A) Alf will win. Mr. Wojchu has failed to deliver clear title.
B) Alf will win. The goods were not of merchantable quality.
C) Wojchu will lose. Risk follows title.
D) Alf will lose. Caveat emptor applies.
E) Alf will lose. It was his obligation to search the title and he failed to.

Question

Quizplus · Accepted Answer

Alf will win because Mr. Wojchu failed to deliver clear title to the car, as it was subject to a security interest that was in default.

Alf Bought a Car from Mr