Steve brings his watch to Knell Watches to be repaired.Knell Watches sells and repairs watches.Steve entrusts his watch at Knells' until it is repaired.The watch store repairs the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that bounced.Kevin then resells the watch to his friend Jonathan, who is unaware of the stolen nature of the watch.
-According to the entrustment rule, what legal recourse does Steve have to reclaim the watch or collect damages?

Question

Quizplus · Accepted Answer

According to the entrustment rule, Knell Watches had a duty to return the watch to Steve, its rightful owner, and failed to do so by selling it. Steve can therefore sue Knell Watches for damages. He cannot reclaim the watch from Jonathan, as he is a bona fide purchaser who purchased the watch in good faith without knowledge of its stolen nature. Steve may be able to sue Kevin for damages, but this option is not mentioned in the question.

Steve Brings His Watch to Knell Watches to Be Repaired