Business I / The Commercial Registry and Legal Publicity
Practice question · Multiple choice

Registered facts bind everyone; unregistered ones fail against a party in good faith. Why does the registry protect the third party rather than the truth?

Hints
  1. Ask who could most cheaply have prevented the ignorance.
  2. What would a buyer have to do before every transaction if the rule were reversed?
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A. Because commerce needs a source that can be relied on

Why

Publicity works by putting the loss on the cheapest avoider. That is what makes the register worth consulting: what it says can be acted on without investigating behind it.

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