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Recovery in Business Law

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Watson buys a computer from a computer store, paying by check. The check then bounces. In the meantime, Watson has transferred the computer to Wilson. Under what conditions will Wilson prevail against the store if the store tries to recover the computer from him?

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Solution Summary

Discusses how a company can recover property on a bounced check.

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This situation requires us to evaluate the positions of the players: Watson, Wilson, and the computer store. The computer store's sole interest is in recovering the "stolen" property. Watson's motive was to make money by buying something he could not afford and then selling it to someone else. Wilson likely bought the computer without knowing that Watson had basically stolen it.

With these positions in mind, we ...

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