Frank is a jeweler who both sells and repairs jewelry. An elderly woman brought in a red piece of jewelry to be repaired and left it with Frank. Frank called the woman with a question about the piece of jewelry. In that conversation they agreed that Frank would go to the woman's home to talk about the red piece of jewelry. While at her home, Frank stole a blue piece of jewelry from her dresser. The following week Frank's employees sold both the red piece of jewelry and the blue piece of jewelry to Derek, a random customer shopping for Christmas presents.
A. Can the elderly woman get her Red jewelry back from Derek? Explain why or why not
B. Can the elderly woman get her Blue jewelry back from Derek? Explain why or why not
2. Henry, a sporting goods retailer in Ankeny, sent an email to Don's Ski Equipment & More (DSEM) ordering 100 of a specific kind of ski pole. On October 10, DSEM shipped the ski poles via a common carrier from its distribution center on the western side of Colorado. After traveling for approximately one hour, the truck made a wrong turn and fell off the side of a mountain, damaging all of the ski poles. Henry refuses to pay for the ski poles, arguing that the ski poles still belonged to DSEM. DSEM argues that the ski poles belonged to Henry as soon as the truck left its distribution center, and therefore Henry had the risk of loss for the ski poles at the time of the accident. Circle the name of the party that had the risk of loss for the ski poles at the time of the accident:
Henry or DSEM
Explain why you chose this answer