1. Mary Smith was a rancher in the business of buying and selling, horses and cattle. When Gene Baker began buying race horses for investment purposes, he entered into an agreement with Smith to board the horses at Smith's ranch. Mike Perry bought two breeding mares from Smith, unaware that they actually belonged to Baker. Perry sold one horse to Gary Jones. Both Perry and Jones arranged to board the horses with Smith. When Baker removed the horses from Smith's farm, Perry and Jones filed a suit in state court against him seeking to recover the horses alleging they were the owners of the horses.

Question:To whom do the horses belongandwhy?UCC2-403

1. Stone, a merchant seller in Seattle contracted with Rose, a merchant buyer in Rochester, for the sale of goods to be shipped by truck.The terms of the contract were "F.O.B. Seattle".Stone made a contract for shipping and delivered the goods to the carrier.After leaving Seattle, the truck containing the goods was never seen again.Stone has demanded payment for the goods, and Rose has refused.Stone files a suit for payment of the goods.2-509
2. Does Rose have to pay for the goods?Explain.