Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 19

Smith was approached by a man who introduced himself as Brown of Brown Co. Smith, who did not know Brown, asked Dun Bradstreet for a credit report on Brown. He thereupon sold Brown some expensive gems and billed Brown Co. ''Brown'' turned out to be a clever jewel thief, who later sold the gems to Brown Co. for valuable consideration. Brown Co. was unaware of ''Brown's'' transaction with Smith. Can Smith successfully sue Brown Co. for either the return of the gems or the price as billed to Brown Co.?