Samantha purchased a used computer system from Office Rental,Inc.who was updating its computers.Later,Big Bank asserted the right to repossess the used computer system from Samantha since it had a lien on all of Office Rental's business equipment to secure an unpaid loan.Samantha was unaware of this lien.What are Samantha's legal rights?

A) She can sue Office Rental for breach of warranty of title.
B) She can claim that she was unaware of Office Rental's debt,and hence,Big Bank cannot assert its lien.
C) She can continue to possess the computer system,since she paid Office Rental for it.
D) She can claim a refund from Office Rental,but cannot bring a lawsuit against Office Rental or Big Bank.

Question

Kimberlin Arnold · Accepted Answer

Final Answer : A, Explanation :  Samantha can sue Office Rental for breach of warranty of title, as the company did not have the legal right to sell the computer system with a lien on it. This breach entitles Samantha to damages such as a refund or other compensation for her loss. However, her claim against Big Bank may be limited, as the bank had a valid lien on the computer system as collateral for the unpaid loan.

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