Crystal Purchased a Specific, Fully Functioning Widget from Husker Du

question 39

Essay

Crystal purchased a specific, fully functioning widget from Husker Du Inc. She promised to pay the price of $10 000 within one month. As part of a promotional campaign, Husker Du agreed to deliver the widget to her factory for free. While shipping the widget to Crystal's place, however, Husker Du's employee carelessly left its truck unlocked on the street during his lunch break. The widget was stolen from the truck and has never been recovered. Husker Du nevertheless insists that Crystal had already acquired property in the widget by the time of the theft and that she therefore was required to honour her promise to pay $10 000. Is that argument correct? Did property pass to Crystal? Is she required to pay the price? Explain your answer.

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Definitions:

Consumer Products

Goods produced for personal use by the general public.

Channel Functions

The roles and activities performed by intermediaries within a distribution channel, such as product information dissemination, negotiation, and order fulfillment.

Grading

The process of evaluating the quality or size of products like agricultural commodities, based on a set of standards.

Facilitating Function

Functions that ease the process of market transactions by dealing with logistic aspects like distribution and financing.