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B is corrent because in any contract for the sale of goods, unless specifically disclaimed, the seller extends a warranty of title to the buyer. Such a warranty is neither express nor implied but warrants that the seller has good title to the goods, that the transfer of said title is rightful, and that the buyer will have knowledge of all liens against the property at the time of transfer. Williams, the buyer, was not informed of all liens against the property; thus, Ace Auto must bear the loss since it violated the provisions of the title warranty.
A is incorrect because the seller will bear the loss in the event of defective title unless he properly disclaims that warranty.
C is incorrect because possession of an item does not automatically result in the presumption of good title or ownership.
D is incorrect because even if Ace disclaimed "any and all warranties," this would not discharge a warranty of title since specific reference to this warranty must be made in any disclaimer thereof.