Asked by Ameer Salem on May 25, 2024

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Which of the following statements regarding when a person with voidable title sells a good to a good-faith purchase is false?

A) Good-faith purchasers can do nothing to avoid injury.
B) The rightful owners of goods have the opportunity to protect themselves.
C) The rightful owners of goods bear the burden of collecting from fraudulent buyers.
D) A seller who has a voidable title cannot pass good title to a good-faith purchaser.

Voidable Title

A legal concept indicating that a title or ownership can be rendered invalid by a court if certain conditions are met.

Good-faith Purchaser

An individual who buys property without knowledge of any existing claims or disputes over the property.

  • Comprehend the fundamental concepts related to the transfer of ownership, including scenarios in which ownership can be invalidated or potentially invalidated.
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NP
Natalie PerezMay 27, 2024
Final Answer :
D
Explanation :
A seller who has a voidable title has the power to pass good title to a good faith purchaser for value.Good-faith purchasers can do nothing to avoid injury.However,the rightful owners of goods at least have the opportunity to protect themselves by taking steps to assure themselves of the buyer's identity,accepting only cash or certified checks,refusing to part with the goods until they have cash in hand,or taking steps to discover fraud before parting with the goods.In view of their greater relative fault,the Code requires the original owners of the goods to bear the burden of collecting from their fraudulent buyers.