Harold, a minor, decided to trade his 1985 truck on a new, late-model car at the local dealership. One week after driving the new car, Harold decides that he cannot afford the payments. Harold now wishes to disaffirm his purchase and get his old truck
back. The dealer informs Harold that the truck has been sold. Can Harold get the old truck back and disaffirm his contract with the dealer? Explain.
A contract is voidable at a minor's option. In this case the dealer acquired voidable title to the truck. The UCC, however, provides that a merchant with voidable title can transfer valid title to a buyer in the ordinary course of business. Harold can disaffirm the contract but cannot get the truck back.
You might also like to view...
Reprocessing of transactions helps establish that all valid items have been recorded. Reprocessing tests which of the following assertions?
a. Occurrence. b. Rights. c. Existence. d. Completeness.
In the battle for "share of stomachs," some supermarkets are moving upscale, providing higher-quality food offerings and more personalized service, such as home delivery. This strategy represents a shift in the ________ element of the marketing
A) place B) packaging C) product D) promotion E) price
To study changes in ROA, the analyst can disaggregate ROA into the product of two other ratios: the profit margin for ROA ratio and the total assets turnover ratio
Indicate whether the statement is true or false
Under which of the following transactions does title to goods pass from the seller to the buyer?
A. an option contract B. a rental agreement C. a lease agreement D. a contract for the sale of goods