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Management Studies

Question: Mr. Ess, the owner of the SS Skimpy and an American citizen, borrows money from Multi Bank in London to outfit his ship, giving the bank a maritime lien. Mr. Ess sells the Skimpy to Mr. Tee, a Canadian. Mr. Tee is unaware of the lien and unaware that Mr. Ess has defaulted on the loan. When the ship pulls into a British port, the bank arranges for it to be arrested and sold to pay off the balance due on the loan. Can the bank do this?

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