In the video below Steve discusses a case involving a dealership that sold a customer a stolen car. The customer purchased the car with all necessary paperwork and a title, but later, the police showed up, repossessed the car, and revealed that it was stolen.
The video presents a specific case in Atlanta, where a man was served with a summons to Superior Court by the dealership that sold him the stolen car. After Channel 2 News got involved, the finance company returned the money for the vehicle, and a magistrate judge ordered the dealership to pay the buyer $4,500.
Lato explains the concept of the warranty of title, stating that merchants are required to warrant that the title conveyed to the buyer is good and rightful. This warranty applies regardless of whether the seller knowingly or unknowingly transferred the good title.
The dealership initially challenged the order to pay the buyer, but the matter appears to be moving towards a settlement where they might pay the judgment and additional attorney fees. How would you feel if you were sold a classic car and had to end up giving it back?
