Amy Carr looked at a 2016 Ford being sold by a private party who told Carr that the car was free and clear of all encumbrances. Carr had the Ford inspected by Automobile Association, which reported it to be in good condition. Carr bought the Ford for $8000. Two months later, the car was seized by a bank that had properly perfected and attached its security interest. On these facts, which of the following is true?
A) Carr would be able to keep the Ford because the seller had represented that the Ford was free and clear of encumbrances.
B) Carr would be able to keep the Ford because she was an innocent purchaser without notice of any lien or charge.
C) The bank would get the Ford because it had title to it as security, and it could claim its right to title whether it perfected and attached the security interest or not.
D) The bank would get the Ford because it properly perfected and attached its security interest.
E) Carr will lose the car and has no recourse against anyone.
Correct Answer:
Verified
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