Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 1

Home Indemnity, an insurance company, paid one of its insureds after the theft of his car. The car reappeared in another State and was sold to Michael Schrier for $4,300 by a used car dealer. The dealer promised to give Mr. Schrier a certificate of title. One month later the car was seized by the police on behalf of Home Indemnity. Explain who is entitled to possession of the car.