Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 11

Devos, Ltd. acted as a "reverse distributor" of pharmaceutical products: It collected pharmaceuticals from parties wishing to receive credit for returns and consolidated returns to the producer. Rebel shipped products for return to Devos, who forwarded the products to Stericycle. Stericycle processed the return, but the return credit was refused. Rebel then sued Devos as bailee for failure to return to Rebel the bailed pharmaceutical products. Did Devos have a continuing responsibility to Rebel after delivering the product to Stericycle? [Rebel Distributors Corp. v. Devos, Ltd., 376 Fed. Appx. 772 (9th Cir.)]