In the following situations, two parties claim the same goods. Who is most likely to prevail in each circumstance? Explain.
(a)Olan steals Phil's television set and sells it to Quincy, an innocent purchaser, for value. Phil learns Quincy has the set and demands its return.(b)Riley takes his television set for repair to Silky, a merchant who sells new and used television sets. By accident, one of Silky's employees sells the set to Tuna, an innocent purchaser-customer, who takes possession. Riley wants his set back from Tuna.
What will be an ideal response?
| (a) | A buyer acquires whatever title the seller has to the goods sold. If the seller is a thief, the seller's title is void (seller has no title). Thus, the buyer can acquire no title, and the real owner has superior rights. Under those principles, Phil can recover the television set from Quincy. |
| (b) | When a person "entrusts" goods to a merchant (a person who deals in goods of that kind), the merchant has the power to transfer a good title to any purchaser who acquires the goods in the ordinary course of business. Riley entrusted his set to merchant Silky. Silky deals in goods of that kind. Therefore, Silky could pass good title to the set sold to a customer (Tuna) because Tuna purchased the goods in the ordinary course of business. Consequently, Riley cannot get the set back from Tuna. (But Silky the merchant is liable to the true owner, Riley, for the equivalent value of the set). |
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