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    Buying a Computer with a Bouncing Check

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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 Preview

    Bouncing checks is a crime and will put the offenders to jail.

    In the current case, the computer store has no control over Wilson. It cannot get the computer from him by forcible means. Wilson possibly bought the computer from Watson thinking that the transaction with the computer store was in order. The entities that need to settle are the computer store owner and Watson. The computer store can ...

    Solution Summary

    The solution analyzes the case of a computer buyer paying with a check that bounced. It looks at how the computer store can recover the item.