Amy Jones looked at a 2011 Ford being sold by a private party who told Jones that the car was free and clear of all encumbrances.Jones had the Ford inspected by Automobile Association,which reported it to be in good condition.Jones bought the Ford for $8000.Two months later,the car was seized by a chattel mortgagee bank that had properly registered its claim in the registry within the time allowed by the act governing chattel mortgages.Given these facts,which of the following is true?
A) Jones would be able to keep the Ford because the seller had represented that the Ford was free and clear of encumbrances.
B) Jones would be able to keep the Ford because she was an innocent purchaser without notice of any lien or charge.
C) The chattel mortgagee would get the Ford because it had title to it as security, and it could claim its right to title whether it registered the chattel mortgage or not.
D) The chattel mortgagee would get the Ford because it properly registered its chattel mortgage on time.
E) Jones will lose the car and has no recourse against anyone. She should have checked the registry.
Correct Answer:
Verified
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