StoryBoard Creatives approached Logos Studios with a script for a movie. Logos Studios liked the script, and bought the rights for the script from StoryBoard. Subsequently, Mr. Simpson, a former employee of StoryBoard claimed that he had the copyright to that script. Mr. Simpson proved his copyright in court. He then notified Logos Studios that they could not start production on the script without his permission, and adequate payment of fees. Logos Studios then rescinded the contract with StoryBoard based on the breach of ________.
A) warranty of no security interests
B) warranty against infringements
C) warranty of no interference
D) warranty of good title

Question

Quizplus · Accepted Answer

The correct answer is B) warranty against infringements. This is because StoryBoard Creatives implicitly warranted that the script did not infringe on anyone else's copyright when they sold the rights to Logos Studios. When Mr. Simpson proved his copyright, it showed that StoryBoard breached this warranty.

StoryBoard Creatives Approached Logos Studios with a Script for a Movie