Hollywood types and would-becelebritiesregularly solicit high-end jewelers for baubles to enhance fashion shoots or frankly to make them look better at, say, the Oscars. It is win-win: Thestylistgets the look and the jeweler may get some free publicity. So nothing seemed out of the ordinary when, in 2003, fashion stylist Derek Khan asked the William Goldberg Diamond corporation for anecklacefeaturing a 7.44 carat pear shaped diamond certified by the Gemological Institute of America. As is customary, theentrustingwas memorialized in a written consignment agreement prohibiting Kahn from selling the piece. But after the shoot, Kahn stole the diamond and disappeared. Goldberg fileda policereport and notified the GIA of the theft.

Questions To Discuss:

1. What is the Entrustment Rule?
2. In Zarestky vs. The Willaim Golberg Diamond Corporation how did the court interpret this rule ?