Case 6 backmirzie v. 1500569 ontario ltd.

MG131 Canadian business law

From Chapter 8 Cases for Discussion #1, page 274.

Parvanh Backmirzie left two valuable Persian rugs with La Moquette Fine Rugs and Furnishings to be sold on consignment. But they were not sold and while waiting to be picked up by Backmirzie they were stolen during a break-in at the store. This action is brought by Backmirzie against the company owner of the store demanding compensation for the loss.

Explain the basis of this action, the arguments that could be advanced by both parties and the likely outcome. Would your answer be affected by the additional information that several days before the break-in the proprietor of the store phoned Backmirzie saying she should pick up the rugs as she had observed two men in the store looking at them and they appeared to be "casing" the store and she feared a break-in? But she delayed picking them up and the rugs were stolen.