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Dubious had a quantity of old car parts in a corner of his warehouse. On May 21 he agreed to sell them to Able for

Dubious had a quantity of old car parts in a corner of his warehouse. On May 21 he agreed to sell them to Able for $3000. A fire broke out in that corner of the warehouse in the early morning of May 22 and the parts were destroyed. The next day Dubious was approached by a man who introduced himself as Carr, of the well-known classic-car restoration company Carr, and Donkers (C&D). Carr was not known to Dubious, but Dubious obtained a favorable report on Carr from a credit-reference bureau. He sold Carr valuable antique automobile parts and billed C & D. "Carr" turned out to be a clever crook, who, a short time later, actually himself sold the parts to C & D for valuable consideration. C & D was unaware of "Carr's" transaction with Dubious when it bought the goods from "Carr" (who then disappeared). Dubious also made an oral agreement with Flanagan to ship auto parts to a California warehouse for delivery to Flanagan, the latter to pay Dubious $3000. After the parts were delivered, Dubious presented invoices to Flanagan; Dubious requested payment, but Flanagan refused. Unknown to Dubious, Flanagan had obtained a loan from First Bank and pledged the car parts as collateral--the bank knew nothing of Dubious. Dubious sued Flanagan and Bank to recover the parts, and Bank defended, claiming that it had a valid security interest in the parts and had the right to repossess them because Flanagan hadn't repaid the loan to Bank (and Flanagan declared bankruptcy). From Lawn and Garden Company (LGC) Dubious had purchased a week earlier a slightly used riding lawn mower for $1500. It was clearly marked "AS IS." As Dubious was happily mowing his lawn a police car pulled into his driveway; the police officer had with her Owen Owner, a previous owner of the machine. It appeared that a thief had stolen the mower from Owner's carport, sold it to LGC, which in turn had sold it to Dubious. 1. a) Who bears the risk of loss for the car parts lost in the fire, and what rights has Able against Dubious for non-delivery, if any? b) Dubious demands either that C&D return the parts to him, or that he receive payment from C&D as he had billed the company. Who wins? 2. a) As between Dubious and Bank, who gets the valuable antique car parts? b) As between Dubious and Owner, who gets the lawnmower?

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