A Thief steals a laptop and sells it to an innocent Buyer. The original owner finds the Buyer and demands the laptop. Does the Buyer have good title? | Examoo

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UCC Contracts QUESTION #5855

Question 1

A Thief steals a laptop and sells it to an innocent Buyer. The original owner finds the Buyer and demands the laptop. Does the Buyer have good title?

Yes, because the Buyer was a 'Good Faith Purchaser for Value'.
No, a thief has 'void title' and cannot pass good title to anyone.✔️
Yes, because the laptop is a movable good.
No, unless the Buyer is a merchant.

Correct Answer Explanation

Under UCC §2-403, a person with void title (a thief) has no power to transfer title, even to a good faith purchaser.