Zaretsky's Diamonds is a manufacturer and wholesale dealer of polished diamonds who consigned a large diamond ring to Alan, a fashion stylist who outfitted celebrities on red carpet events, pursuant to a consignment agreement. The agreement stated that Alan had no right to sell or dispose of the diamond and that a sale of the diamond should only occur if and when Alan received from Zaretsky's a separate invoice. Zaretsky's became worried when Alan failed to return the diamond on time and reported the disappearance of the diamond to the police and to the Gemological Institute of America (GIA). Alan was subsequently convicted of theft. However, two days prior to Zaretsky's report to the police and the GIA it appeared in the hands of Louis who had modified the shape of the diamond and presented it to the GIA for certification. The GIA was unaware at the time that the diamond would be reported stolen several days later and therefore certified it. Thereafter, it was purchased by Stanley and Son Jewelers from Louis, on behalf of Donna. Several years passed and Donna gave the diamond to her daughter Suzanne. When Suzanne tried to insure it, it was discovered to be the same diamond stolen from Zaretsky's. Who bears the risk of loss in this case?

a. Suzanne, because Alan was qualified as a merchant who could pass title to the diamond and all transfers of title thereafter were proper. b. Alan, because he was not a qualified merchant and did not obtain title through a transaction of purchase but controlled the diamond at the time of loss. c. Donna, because she was the last bona fide purchaser of the diamond