Susan sued Fixit Shop for return of the clock. Fixit Shop defended that it then had title to the clock and, in the alternative, that Susan must pay the value of the repairs if she is entitled to regain possession. Who will prevail? Why?

Susan sued Fixit Shop for return of the clock. Fixit Shop defended that it then had title to the clock and, in the alternative, that Susan must pay the value of the repairs if she is entitled to regain possession. Who will prevail? Why?

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June 11, 2021
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Susan permitted Kevin to take her very old grandfather clock on the basis of Kevin’s representations that he was skilled at repairing such clocks and restoring them to their original condition and could do the job for $60. The clock had been badly damaged for years. Kevin immediately sold the clock to Fixit Shop for $30. Fixit Shop was in the business of repairing a large variety of items and also sold used articles. Three months later, Susan was in the Fixit Shop and clearly identified a grandfather clock Fixit Shop had for sale as the one she had given Kevin to repair. Fixit Shop had replaced more than half of the moving parts by having exact duplicates custom-made, the clock’s exterior had been restored by a skilled cabinetmaker, and the clock’s face had been replaced by a duplicate. All materials belonged to Fixit Shop, and its employees accomplished the work. Fixit Shop asserts it bought the clock in the normal course of business from Kevin, who represented that it belonged to him. The fair market value of the clock in its damaged condition was $30, and the value of repairs made is $220. Susan sued Fixit Shop for return of the clock. Fixit Shop defended that it then had title to the clock and, in the alternative, that Susan must pay the value of the repairs if she is entitled to regain possession. Who will prevail? Why?

Answer and ExplanationSolution by a verified expert

Explanation

The case determines that Person S is going to prevail. Shop F cannot prevail since, according to the Uniform Commercial Code under Section 2-403, Shop F cannot prevail as Person S is the real owner of the clock. Shop F must have enquired about the ownership of the clock from Person K before buying it and this is the mistake of Shop F. Person S has the right to take back the clock on the basis of the transfer of title by accession. Even though the shop has invested time and money to fix the clock, it cannot claim the clock legally and can only request Person S to pay for the value addition.

Verified Answer

Person S is the real owner of the clock. So, Person S is legally entitled to the clock. It is unfair on the part of Person S to avail of the benefits of the increased value. The transfer of title by accession is applicable on the case.

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