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Doe Purchased an Automobile from Jones for $1,000

Question 20

Multiple Choice

Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on his loan, and the bank discovered that Doe was in possession of the automobile. Which of the following are true?


A) The bank is not entitled to seize the automobile because it had not given Doe notice of its claim against the vehicle before Doe purchased it.
B) The bank is not entitled to seize the automobile because Jones had not given notice to Doe of the bank's claim against the vehicle before Doe purchased it.
C) Doe has a good title to the automobile because he purchased it as a bona fide purchaser, for value, without notice.
D) Jones is liable to Doe for breach of implied condition of title should the bank seize the automobile.
E) Jones is liable to Doe for breach of implied warranty of title should the bank seize the automobile.

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