Larry agrees to sell Janet his lawnmower for $70.Janet writes Larry a check for the full amount,which bounces when Larry presents it to his bank for deposit.Which of the following statements is true?
A)Janet has a voidable title in the lawnmower.
B)Janet is a good-faith purchaser.
C)Janet has a void title in the lawnmower.
D)Janet is a buyer in the ordinary course of business.

Question

Quizplus · Accepted Answer

A seller who has a voidable title has the power to pass good title to a good faith purchaser for value [2-403(1)].A seller has a voidable title to goods if he has obtained his title through fraudulent representations.For example,a person would have a voidable title if he obtained goods by impersonating another person or by paying for them with a bad check or if he obtained goods without paying the agreed purchase price when it was agreed that the transaction was to be a cash sale.

Larry Agrees to Sell Janet His Lawnmower for $70