Asked by Joshua Palesano on May 13, 2024
Verified
In the case in the text,In re Borden,the court concluded that when an artisan loses possession involuntarily:
A) the artisan does not necessarily lose the artisan's lien.
B) the artisan always loses the artisan's lien.
C) the artisan always retains the artisan's lien.
D) the artisan's security interest still has top priority.
Artisan's Lien
A legal claim allowing a worker or service provider to retain possession of a client's property until payment for services rendered on that property is received.
Involuntarily
Occurring without the person's willing agreement or consent.
Possession
Possession refers to the act of having or holding property in one's power or control, whether owned or not.
- Understand the legal implications for involved parties in secured transactions when regulations are not adhered to properly.
Verified Answer
WM
Willie McMillanMay 17, 2024
Final Answer :
A
Explanation :
The court concluded that where the artisan loses possession involuntarily,the artisan does not necessarily lose the artisan's lien.Likewise,a conditional release of goods does not necessarily defeat the artisan's lien.This result follows at least with respect to holders of prior security interests who are not impaired by the conditional release.Some courts hold that an artisan's lien lost when possession is lost is revived upon resumption of possession.Such a lien retains its priority as before the release except that the lien is subordinate to the interests of a bona fide purchaser or a creditor who attached or levied on the property while it was in the possession of the owner.
Learning Objectives
- Understand the legal implications for involved parties in secured transactions when regulations are not adhered to properly.