Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin, Steve, who is an adult.Steve conveys this vehicle to Arthur Smith.Arthur does not personally know Steve or Randy.Which of the following expresses the status of this situation?

Question

Quizplus · Accepted Answer

Since Randy is a minor, he does not have the legal capacity to enter into a contract to purchase a vehicle. Therefore, the sale to Steve is voidable at the option of Randy. However, once Steve conveys the vehicle to Arthur, who is a good faith purchaser for value without notice of Randy's lack of capacity, Randy cannot recover the vehicle from Arthur. The sale to Arthur is considered valid, and Randy's only recourse would be to hold Steve liable for any damages caused by the sale.

Randy, a Minor, Buys a New Four-Wheel Drive Truck from the Jones