Question

John C. Clark, using an alias, rented a luxury car from EZCar in California. Clark never returned the car to EZCar and obtained a California "quick title" using forged signatures. He then sold the car to Terry for $34,000 in cash. Terry made improvements to the car and had it insured, registered, licensed, and titled in the state of Utah. When EZCar reported the car stolen, the Utah Department of Motor Vehicles seized the auto and returned it to EZCar. Terry sued EZCar. The trial court concluded that Terry had purchased the car for value and without notice that it was stolen, so he was a bona fide purchaser entitled to the car. EZCar appealed. Please rule.

a. EZCar has no rights to the car anymore.
b. Terry can keep the car
c. Terry must return the car to Clark.
d. Terry must return the car to EZCar.

Answer 1

d. Terry must return the car to EZCar.

Step-by-step explanation:

A bona fide purchaser is one who purchases or buys a property for value that is deceived or cheated by the seller into entering into a purchase contract without verifying the details.

It is the responsibility of Terry to check and verify all the details before purchasing a property from an unknown person. Terry must check the details of the car that Clark had sold him. Since Terry has unknowingly purchased the car without knowing that the car was a stolen property of EZCar, Terry will not be accused of any charges but he will not have any right of possession of the car. He is deceived by Clark and now Terry will have to return the car to EZCar.

Thus the answer is

d. Terry must return the car to EZCar.