Special K Situations

Question 1

Lost volume seller

Answer 1

• unlimited supply
• lost profits measure of damages

eg, Car dealership could’ve sold two cars for profit –> can recover lost profits

Question 2

entrustment

Answer 2

1. owner gives goods to merchant who ordinarily deals in goods
2. merchant sells entrusted goods to bona fide purchaser

Result: BFP always wins: owner has NO rights against BFP BUT can sue merchant for diversion