Sheila desperately needed money, so she took her ring (which was worth $1000) to
ID: 330377 • Letter: S
Question
Sheila desperately needed money, so she took her ring (which was worth $1000) to Paul's Pawn Shop. The Pawn Shop and Sheila signed an agreement, and the essential terms stated that Sheila received from the Pawn Shop $500 cash for a 60-day period. If Sheila returned within 60 days with $750, she would receive her ring back. If she did not, the Pawn Shop would be free to sell the ring after 60 days. Within the 60-day period, Sheila returned to the Pawn Shop to exchange $750 for her ring. However, the Pawn Shop had already sold the ring to Fred's Fine Antique Jewelry for $1000. Fred’s Jewelry is a retail establishment that regularly sells rings and other fine old jewelry. Fred's had no knowledge of the agreement between Sheila and Paul’s Pawn Shop. Sheila sues Fred's for return of her ring. Under these facts:
Fred's will likely be able to keep the ring, because it bought it in good faith and without knowledge of Sheila’s ownership.
Fred's will likely be able to keep the ring, because it buys jewelry in the regular course of business.
Fred's will likely be able to keep the ring, because Sheila has no legal recourse against Paul's Pawn Shop; therefore, she has no legal recourse against Fred's.
Both A and B.
All of the above.
A.Fred's will likely be able to keep the ring, because it bought it in good faith and without knowledge of Sheila’s ownership.
B.Fred's will likely be able to keep the ring, because it buys jewelry in the regular course of business.
C.Fred's will likely be able to keep the ring, because Sheila has no legal recourse against Paul's Pawn Shop; therefore, she has no legal recourse against Fred's.
D.Both A and B.
E.All of the above.
Explanation / Answer
Ans:- Both A and B, In this case Fred has bought the ring in good faith, without knowledge of Sheila’s ownership and it buys jewelry in the regular course of business. Sheila should sue Paul's Pawn Shop for breach of contract.
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