Asked by Joseph Hernandez on Jun 07, 2024
Verified
Which principle states that if an item is transferred from one person to another,the transferee acquires all the rights that the transferor had in the item?
A) Shelter
B) Holder
C) Holder-in-due-course
D) Assignee
E) Third-party-beneficiary
Shelter Principle
A legal concept that allows a person who receives goods in good faith without knowledge of a defect in the title to sell them with a clear title.
- Understand the concept of the shelter principle and its effects on subsequent possessors.
Verified Answer
DB
duygu bekmenJun 13, 2024
Final Answer :
A
Explanation :
Uniform Commercial Code Section 3-203(b)sets forth the shelter principle,which holds that if an item is transferred from one person to another,the transferee acquires all the rights that the transferor had in the item
Learning Objectives
- Understand the concept of the shelter principle and its effects on subsequent possessors.