Final answer:
Paulson may have several rights against Arthur, including the right to take legal action, demand compensation, or cancel the sale agreement. The correct option is A.
Step-by-step explanation:
Paulson may have several rights against Arthur based on the given scenario:
- Paulson has the right to take legal action against Arthur for selling the car to Byers without informing him about the higher offer from Collector. In this case, Arthur may be held liable for breaching his duty to Paulson by failing to disclose the higher offer. Paulson could pursue legal action to seek compensation for any financial losses incurred.
- Paulson has the right to demand compensation from Arthur for not informing him about the higher offer from Collector. If Paulson can prove that Arthur intentionally withheld information about the higher offer, he may be entitled to compensation for any damages suffered as a result of Arthur's actions.
- Paulson has the right to cancel the sale agreement with Byers and sell the car to Collector. If the sale agreement with Byers was based on misleading or false information provided by Arthur, Paulson may have grounds to cancel the agreement. However, this would depend on the specific terms of the agreement and applicable laws.
Ultimately, the exact rights Paulson has against Arthur would be determined by the specific circumstances and applicable laws in the jurisdiction.