Appliance Paradise sold Carson a refrigerator by Conditional Sale Agreement, duly registered. Carson some months later, in the course of moving to another province offered it to a neighbour, Jones, who was helping Carson load his van. Jones recognized it as a bargain and in good faith paid Carson. On demand from Appliance Paradise, Carson refused to make further payments. Jones refuses to pay, citing that he is a bona fide purchaser for value. Appliance Paradise
A) has no action against Jones.
B) may seize and sell the refrigerator, and sue either Carson or Jones for any deficiency.
C) may seize and sell the refrigerator, and sue Carson for any deficiency.
D) may seize and sell the refrigerator, and sue Jones for any deficiency.
E) has no further action against Carson.

Question

Quizplus · Accepted Answer

Appliance Paradise may seize and sell the refrigerator, and sue Carson for any deficiency because the original contract was with Carson, and Jones, being a bona fide purchaser for value without notice of the conditional sale agreement, cannot be held liable. Carson, however, remains liable under the original agreement.

Appliance Paradise Sold Carson a Refrigerator by Conditional Sale Agreement