Contemporary Business Law 8th Edition by Henry Cheeseman

تمرين 6

Entrustment Rule Fuqua Homes, Inc. (Fuqua), is a manufacturer of prefabricated houses. MMM, a dealer of prefabricated homes, was a partnership created by two men named Kirk and Underhill. On seven occasions before the disputed transactions occurred, MMM had ordered homes from Fuqua. MMM was contacted by Kenneth Ryan, who wanted to purchase a 55-foot modular home. MMM called Fuqua and ordered a prefabricated home that met Ryan's specifications. Fuqua delivered the home to MMM and retained a security interest in it until MMM paid the pur­chase price. MMM installed the house on Ryan's property and collected full payment from Ryan. Kirk and Underhill then disappeared, taking Ryan's money with them. Fuqua was never paid for the prefabricated home it had manufactured. Ryan had no knowledge of the dealings between MMM and Fuqua. Fuqua claimed title to the house based on its secu­rity interest. Who has title to the home? Fuqua Homes , Inc. v. Evanston Bldg. Loan Co., 52 Ohio App. 2d 399, 370 N.E.2d 780, Web 1977 OhioApp. Lexis 6968 (Court of Appeals of Ohio)