Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise
A) automatically in most sales contracts.
B) only if the buyer asks for such a warranty.
C) only if the seller expresses such a warranty.
D) only in conjunction with lease contracts, not sales contracts.

Question

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise​
A) ​automatically in most sales contracts.
B) ​only if the buyer asks for such a warranty.
C) ​only if the seller expresses such a warranty.
D) ​only in conjunction with lease contracts, not sales contracts.

Quizplus · Accepted Answer

Under the UCC, warranties of title arise automatically in most sales contracts, meaning that the seller is warranting that they have valid title to the goods being sold.

Vehicle Wholesale Company and Walt's Retail Motors Enter into a Contract