Problem relating to used items inventory


Bernie's stereo has been damaged when his niece spilled some juice on it. He takes it to High Fidelity Co. to be fixed. Five days later, when he returns to the store to pick it up, he finds out that a clerk had sold it to a customer, thinking it was part of their used items inventory. Which of the following is true?

a. Bernie may recover his stereo provided he was given a receipt by High Fidelity.

b. High Fidelity did not have the power to transfer Bernie's rights in the stereo. Bernie may recover his stereo from the third party.

c. If the third party buyer was a good faith purchaser, Bernie will not be able to get his stereo back as he entrusted his stereo to High Fidelity.

d. Bernie may recover his stereo if he can prove that the clerk at High Fidelity was not a good faith seller.

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Accounting Basics: Problem relating to used items inventory
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