Janicka purchased a snowmobile from Andrew under a conditional sale agreement. Andrew registered the conditional sale agreement pursuant to the requirements for registration set down in the provincial legislation. Janicka later sold the snowmobile to Gary, who purchased the machine without making a search for conditional sale agreements. If Janicka defaults in payment, and Andrew seizes the snowmobile, Gary would have a right of action against Janicka.

Question

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Gary would have a right of action against Janicka because Janicka sold the snowmobile to Gary without disclosing the conditional sale agreement with Andrew, and Gary purchased it without knowledge of Andrew's interest.

Janicka Purchased a Snowmobile from Andrew Under a Conditional Sale