John C. Clark, using an alias, rented a Lexus from Alamo Rent-A-Car in San Diego, California. Clark

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John C. Clark, using an alias, rented a Lexus from Alamo Rent-A-Car in San Diego, California. Clark never returned the car to Alamo and obtained a California “quick title” using forged signatures. He then advertised in the Las Vegas Review Journal newspaper and sold the car to Terry and Yvonne Mendenhall for $34,000 in cash. The Mendenhalls made improvements to the car, had it insured, smog- and safety-tested, registered, licensed, and titled in the state of Utah. When Alamo reported the car stolen, the Nevada Department of Motor Vehicles seized the auto and returned it to Alamo. The Mendenhalls sued Alamo. The trial court concluded that the Mendenhalls had purchased the car for value and without notice that it was stolen, and so they were bona fide purchasers entitled to the Lexus. Alamo appealed. Please rule.

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Business Law and the Legal Environment

ISBN: 978-1111530600

6th Edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Dean A. Bredeson

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