Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 9

Paul Brokke purchased a Pentax Super Program camera for $89.95 from Albert Williams, the operator of a pawnshop in Bozeman, Montana. Shortly after the purchase, Brokke was notified by the Bozeman police department that the camera was stolen property; he was directed to surrender it to the police department, which he did. He then returned to the pawnshop and requested a refund for his purchase of the stolen merchandise. Williams denied the request, and Brokke brought suit to recover the purchase price. Williams argued that he had no knowledge that the camera was stolen property and asserted that he disclaimed any warranty of title of goods sold in his business by way of a large sign posted in his store stating that all merchandise is sold "as is." Brokke denied having seen any such sign. Is Williams liable to Brokke for breach of the warranty of good title in the sale of the stolen camera?