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

Exercise 21

Steven offered to sell his used automobile to Benito for $7,600 cash. Benito agreed to buy the car, gave Steven a check for $7,600, and drove away in the car. The next day, Benito sold the car for $8,000 to Jose, a good faith purchaser. The bank returned Benito's $7,600 check to Steven because of insufficient funds in Benito's account. Steven brings an action against Jose to recover the automobile. What is the judgment? Explain.