Kristine Lashinsky, an appliance dealer, buys a $800 color television from the Yadanishan Bruce Sales and Services, Inc., with a check drawn on an account that Lashinsky had recently closed.James Matteson, Lashinsky's brother-in-law, purchases the TV set from Lashinsky at her home during Lashinsky's annual July 4th barbecue, for $150, still in the box.Matteson tells Lashinsky to hold on to the TV at her store until the following Saturday, when he, Matteson, will have room to keep it.Lashinsky agrees to do so. Lashinsky takes the TV back to her store the next day.That afternoon she sells it to Doug Horgan, a customer in her store, for $650.Matteson then learns what his dear sister-in-law Kristine did.

Who owns the TV?

Hint:Follow the TV, noting what happens to "title" each time something happens to it.Use the code section below.DISCUSS FULLY! READ CRITICALLY! BE CAREFUL!

2-403. Power to Transfer; Good Faith Purchase of Goods; "Entrusting"

(1) A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been delivered under a transaction of purchase the purchaser has such power even though

(a) the transferor was deceived as to the identity of the purchaser, or

(b) the delivery was in exchange for a check which is later dishonored, or

(c) it was agreed that the transaction was to be a "cash sale", or

(d) the delivery was procured through fraud punishable as larcenous under the criminal law.

(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of business.

(3) "Entrusting" includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods have been such as to be larcenous under the criminal law.