Levi, a well-known lumber dealer with a good reputation, buys a load of lumberand pays for it with a check that is later dishonored. Sam, who is unaware of thebad check, buys the lumber from Levi. Sam is a (n) a. good faith purchaser. b. bad faith purchaser. c. insolvent purchaser. d. bailee.

Question

Raphael

Business

23 September, 04:26

Levi, a well-known lumber dealer with a good reputation, buys a load of lumberand pays for it with a check that is later dishonored. Sam, who is unaware of thebad check, buys the lumber from Levi. Sam is a (n) a. good faith purchaser. b. bad faith purchaser. c. insolvent purchaser. d. bailee.

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Answers (1)

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Hamza Barr · Answer 1

The correct answer is A

Explanation:

Good faith purchaser is the purchaser who gives the value for an asset in a good faith and without the knowledge of the adverse claims.

Under this case, Levi, is a dealer who is involved in buying the lumber lands and pays the amount with check, which later on got dishonored. So, Sam is not aware of all this, bought the lumber from the Levi. Therefore, the Sam is an good faith purchaser as he trust the Levi and was not aware of all this.