1. Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on his loan, and the bank discovered that Doe was in possession of the automobile. Which of the following are true?

Multiple Choice

Jones is liable to Doe for breach of implied warranty of title should the bank seize the automobile.

Jones is liable to Doe for breach of implied condition of title should the bank seize the automobile.

Doe has a good title to the automobile because he purchased it as a bona fide purchaser, for value, without notice.

The bank is not entitled to seize the automobile because Jones had not given notice to Doe of the bank's claim against the vehicle before Doe purchased it.

The bank is not entitled to seize the automobile because it had not given Doe notice of its claim against the vehicle before Doe purchased it.

2. Where a cheque is made payable to Lucien Colbert, and on its reverse are written the words "For deposit only to the credit of L. Colbert,"

Multiple Choice

None of the responses are correct.

the bill can only be cashed.

the endorsement is a failure.

the endorsement is a special endorsement.

the endorsement is a restrictive endorsement.

3. Wen purchased an automobile from Nick for $10,000. Unknown to Wen, Nick had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Nick defaulted on the loan, and the bank discovered that Wen was in possession of the automobile. Wen has a good and clear title to the automobile, because he purchased it without knowledge of the bank's claim.

True or False

4. The standard of care under environmental legislation is very high, holding officers and directors of corporations personally liable for allowing any pollution to occur regardless of the steps they may have taken to prevent it.

True or False