Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 12

Smith was approached by a man who introduced himself as Brown of Brown Co. Brown was not known to Smith, but Smith asked Dun Bradstreet for a credit report and obtained a very favorable report on Brown. He thereupon sold Brown some expensive gems and billed Brown Co. "Brown" turned out to be a clever jewel thief, who later sold the gems to Brown Co. for valuable consideration. Brown Co. was unaware of "Brown's" transaction with Smith. Can Smith successfully sue Brown Co. for either the return of the gems or the price as billed to Brown Co.?