Jack Is a Guest at Harry's Home

question 14

Multiple Choice

Jack is a guest at Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. Jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert. Jack is frantic. Can Harry get the music box from Robert?

• A) No, the jeweler gives good title to a bona fide purchaser for value.
• B) No, the jeweler was not a merchant with regard to music boxes.
• C) Yes, Robert was not a buyer in the ordinary course of business.
• D) Yes, Robert has assumed only Jack's title, which is no title at all.

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Definitions:

Initial Endowment

In economic theory, refers to the initial quantities of various assets or goods that an individual or entity possesses.

Competitive Equilibrium

A market state where supply equals demand, and no economic actors have the incentive to change their behavior.

Demand Equals Supply

A market equilibrium condition where the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Numeraire

A unit of account or standard measure in economics used to compare the value of goods or services.