Smith and Roberson’s Business Law
Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 6, Problem 4Q
Summary Introduction

To discuss: The rulings concerning with person W and Person J.

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Wilson engages Ruth to sell Wilson’s antique walnut chest to Harold for $2,500. The next day, Ruth learns that Sandy is willing to pay $3,000 for Wilson’s chest. Ruth nevertheless sells the chest to Harold. Wilson then discovers these facts. What are Wilson’s rights, if any, against Ruth?
Joseph Eugene Dodson, age sixteen, purchased a used pickup truck from Burns and Mary Shrader. The Shraders owned and operated Shrader’s Auto Sales. Dodson paid $14,900 in cash for the truck. At the time of sale, the Shraders did not question Dodson’s age, but thought he was eighteen or nineteen. Dodson made no misrepresentation concerning his age. Nine months after the date of purchase, the truck began to develop mechanical problems. A mechanic diagnosed the problem as a burnt valve but could not be certain. Dodson, who could not afford the repairs, continued to drive the truck until one month later, when the engine “blew up.” Dodson parked the vehicle in the front yard of his parents’ home and contacted the Shraders to rescind the purchase of the truck and to request a full refund. a. What arguments would support Dodson’s termination of the contract? b. What arguments would support Shrader’s position that the contract is not voidable? c. Which side should prevail? Explain.
John Torniero was employed by Micheals Jewelers, Inc. (Micheals).  During the course of his employment, Torniero stole pieces of jewelry, including several diamond rings, a sapphire ring, a gold pendant, and several loose diamonds.  Over a period of several months, Torniero sold individual pieces of the stolen jewelry to G&W Watch and Jewelry Corporation (G&W).  G&W had no knowledge of how Torniero obtained the jewels.  Torniero was arrested when Micheals discovered the thefts.  After Torniero admitted that he had sold the stolen jewelry to G&W, Micheals attempted to recover it from G&W.  G&W claimed title to the jewelry as a good faith purchaser for value. Micheals challenged G&W’s claim to title in court.  Who wins?  Explain your reasoning.
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