Jeff purchased in good faith a warehouse receipt for 1,000 pairs of running shoes without notice of any defense to it, for value, and in the regular course of his business. Unknown to Jeff, the goods had been stolen from Jane and delivered to the warehouse that issued the receipt purchased by Jeff. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Jeff may have purchased the warehouse receipt in good faith and for value, but he did not acquire good title because the goods were stolen. Jane, as the true owner of the goods, is entitled to them and will prevail over Jeff's claim. In this situation, Jeff is considered a "thief's fence" who unwittingly purchased stolen goods.

Jeff Purchased in Good Faith a Warehouse Receipt for 1,000