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Fay Witcher owned a Ford Bronco. Steve Risher operated a used-car lot. Witcher delivered his automobile to Risher, asking him to resell it if he could.
Witcher specified that he wanted all cash for his car, not cash plus a trade-in. Risher sold the car to Richard Parker for $12,800, but he took a trade-in as part payment.
Risher promised to deliver the Bronco's certificate of title to Parker within a few days but never did. He was also obligated to deliver proceeds of the sale to Witcher and, of course, he failed to do that.
Parker claimed that the car was rightfully his. Witcher argued that Parker owned nothing because he never got the title and because Witcher never got his money. Who loses?

Strategy: Any entrusting of goods to a merchant who deals in goods of that kind gives him the power to transfer all rights of the entruster to a buyer in the ordinary course of business.
A buyer in the ordinary course of business generally takes goods free and clear of any security interest. Did Witcher entrust the auto? Was Parker a BIOC? Why or why not?


Sagot :

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