The unpaid seller has not assented to the buyer’s disposition, and no qualifying good-faith…
Section 53(1) states that the unpaid seller's right of lien or stoppage in transit "is not affected by any sale or other disposition of the goods which the buyer may have…
Choose your answer
The unpaid seller has not assented to the buyer’s disposition, and no qualifying good-faith document-of-title transfer for consideration is involved. Under the default rule in section 53(1) of the Sale of Goods Act, the seller’s lien or stoppage right is:
Answer and explanation
Correct answer B
Section 53(1) states that the unpaid seller's right of lien or stoppage in transit "is not affected by any sale or other disposition of the goods which the buyer may have made, unless the seller has assented thereto". A sub-sale or pledge by the buyer therefore does not defeat the right, subject to the proviso on transfer of a document of title to a good-faith transferee for consideration.
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