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Answer :
Final answer:
The correct chain of title for the stolen Rolex watch is Ted to Sonny to Dad, as it recounts the sequence of possession from the thief to the innocent purchaser, and finally to the recipient of the watch as a gift. So the correct option is 1) Ted → Sonny → Dad.
Explanation:
The accurate representation of the chain of title for the stolen Rolex watch from the given scenario is 1) Ted → Sonny → Dad. Ted initially stole the watch, which is an act of larceny, and then he sold it to Sonny. Sonny, who was unaware of the theft and therefore a bona fide purchaser, later gave the watch as a present to Dad for Father's Day. Even if the initial transfer was unlawful due to theft, the chain of title as described in the question reflects the physical transfer of the watch between the parties.
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