124) The entrustment rule can have harsh results. Why should the owner not be able to get back the property when it was sold by the merchant with no authorization of the owner? Should the rule be changed? What steps can an entrustor take to minimize the risk of losing the property?
125) Susan orders a great computer from an out-of-state company. The terms of the contract provide F.O.B. place of destination. The seller ships the computer to Susan. Unfortunately, it never arrives. Between Susan and the seller, who is responsible for loss?
126) Frank is a second-hand furniture dealer. Frank goes to yard sales early every Saturday morning in search of items for his store. One Saturday, Frank finds several items that he likes at one sale. One item is a large heavy leather sofa that he cannot take with him because it won’t fit into his van. He arranges with the seller to return that evening when he has a truck that the sofa will fit in. Unfortunately, there was a huge sudden downpour in the late afternoon, the seller could not move the sofa inside, and it was ruined. Who bears the risk of loss?
127) Frank is a jeweler who both sells and repairs jewelry. An elderly woman brought in several pieces of jewelry to be repaired and left them with Frank. Frank called the woman with a question about one of the pieces of jewelry. In that conversation they agreed that Frank would go to the woman’s home to examine and possibly purchase some of her jewelry. While at her home, Frank stole several pieces of her jewelry. The following week Frank’s employees sold all of the jewelry that she had left at the store and all that Frank had stolen. Can the woman get her jewelry back from the persons who purchased it?
128) Kathy has decided to spend some money on herself and goes out to purchase a big screen television and a home theater system. She goes to Best Circuit, a national chain and sees the exact television she wants and it’s on sale. She purchases the television for cash and then looks at the home theater systems. She sees a few that she likes and one that she loves. Unfortunately the one she loves is more than her budget allows so she decides to wait until it goes on sale. The next day she’s mentions home theatre system to a coworker who tells her that she knows someone that sells home theater systems very inexpensively. She calls this “friend” who meets her at lunch time and has the theater system she wants in the trunk of his car. It’s in a sealed box and the price is 25% off what Best Circuit sells it for. Kathy purchases the system for cash and takes it home. A week later, the police show up at her door. It seems that Best Circuit paid the manufacturer with a bounced check when obtaining the television. The “friend” turned out to be a thief that sold her a stolen theater system. Does Jan get to keep the television and home theater system or must she relinquish them?
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