Which term is associated with a seller's failure to reveal a lien that could affect the buyer's ownership?

• A. Warehouse receipt
• B. UCC
• C. Implied warranty of title
• D. Bailment

Answer: (C)

Implied warranty of title explains why this is the right term. In a sale of goods under the UCC, the seller implicitly warrants that they own the goods and that the title is free from liens or encumbrances that would impair the buyer’s ownership. If a lien is hidden or not disclosed, the buyer’s ownership could be jeopardized, which constitutes a breach of that warranty. Remedies can include damages or rescission, depending on the situation.

The other terms don’t fit because a warehouse receipt is just a document representing stored goods, not a warranty about liens; the UCC is the governing body of rules, not a term itself; and bailment concerns a relationship where one party holds another’s property, not disclosure of liens.