Question: Using a bad check, B purchased a used automobile from a dealer. B then took the automobile to an auction at which the automobile was
Using a bad check, B purchased a used automobile from a dealer. B then took the automobile to an auction at which the automobile was sold to a party who had no knowledge of its history. When B's check was dishonored, the dealer brought suit against the party who purchased the automobile at the auction. Was the dealer entitled to reclaim the automobile? Jessica: If the sale was rescinded before the resale of the vehicle to the good-faith purchaser, the vehicle would then be considered stolen. Stolen goods do not constitute a transfer of title, only a transfer of property, and the resale of goods to which the thief only possesses the property gives the owner claim over those goods. Simply put, actual transfer of title was rescinded before the resale, putting ownership of title back into the possession of the original owner. Therefore, even a good-faith buyer cannot receive a transfer of title. In conclusion, the dealer should check the legitimacy of the check before transferring the title, and if they do not, they must rescind the sale as soon as they become aware of the bad check and hope the buyer hasn't resold the vehicle before then. Respond to Jessica
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