Contracts For The Sale Of Goods - Stolen Goods

Front 1

Does a buyer from a thief have good title?

Back 1

Buyer from a thief gets a void title because the seller (the thief) has no title to transfer.

Front 2

What remedy do you have after buying from a thief and losing your item to the original owner?

Back 2

Breach of implied warranty of title against the thief.

Front 3

Entrusting Rule

Back 3

Under the UCC's entrusting rule, whenever the owner of goods entrusts the goods to a merchant who regularly deals in goods of that kind (a bailment), then the entrusting rule gives the merchant the power but not the right to transfer whatever title the entrustor (bailor) had to a Good Faith purchaser who purchases those goods in the ordinary course of the sellers business.

This rule does not apply to pawnbrokers.

Front 4

Entrusting Rule Example - Thief

Back 4

Thief brings stolen broken watch to a jeweler to have it repaired, jeweler puts it in the window of his shop.

GFP owner shows up and buys it for $400 from the jeweler, original owner sees GFP with it, who gets to keep it? Original owner gets to keep it because thief can't entrust any title to the jeweler

Front 5

Entrusting Rule - Owner

Back 5

You bring an old desk you bought to a repairman, he agrees to fix it up. Someone else comes in and sees the desk because it was moved into the showroom after it was cleaned up, he buys it. HE gets to keep the desk because he was a good faith purchaser in the ordinary course of the merchant's business and the original owner entrusted it to a merchant who regularly deals in goods of that kind.