Question
Jack and Diane accidentally included a small bag containing their sterling silver in a bag of used clothing that they donated to Goodwill. The silverware,
Jack and Diane accidentally included a small bag containing their sterling silver in a bag of used clothing that they donated to Goodwill. The silverware, which was valued at over $35,000, had been given to them 25 years earlier by Diane's father as a wedding gift. the silverware set had great sentimental value as it belonged to several generations of Diane's family. Jack and Diane realized what had happened shortly after Jack returned from Goodwill but when Jack called Goodwill, he was told that the silverware had immediately been sold to a Bruce for $15.00. Although Goodwill called Bruce and asked him to return the silver, Bruce refused to return it. Jack and Diane then brought an action against Bruce to regain the silverware, claiming Bruce did not have title to it. 1. Did Bruce act wrongfully in any way by not returning the silver to Goodwill Industries when requested to do so? What would you have done in this situation? 2. Goodwill argued that the entrustment rule applies. The entrustment rule is defined as entrusting goods to a merchant who deals in goods of that kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business. Entrusting includes both turning over the goods to the merchant and leaving purchased goods with the merchant for later delivery or pickup. Why would Goodwill want this rule to apply? How might Goodwill justify its argument from an ethical point of view?
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