Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs watches. Steve entrusts his watch at Knell's 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

Under the entrustment rule, Knell Watches is liable for the loss since they were entrusted with Steve's watch for repair. Steve can sue Knell Watches for damages. Kevin and Jonathan may be liable for their fraudulent actions, but the primary liability rests with the watch store.

Steve Brings His Watch to Knell Watches to Be Repaired