In: Operations Management
In the first case, Travis is not aware about the bike stealing and the original owner and he has purchased the bike legally by giving money consideration from Richard. However, the important thing is Travis should get the legal sales papers of the bike, otherwise it cannot be considered as authentic sale. As Richard is a thief and only stolen the bike, he do not have the bike purchase documents. Therefore, Juan by showing the original bike papers can claim the bike ownership and will prevail.
In the second situation, the employee of Boulder’s has accidently sell Juan’s bike which he has given for repair. He sold the bike to Travis who takes the possession but not aware of the fact that it owes to someone else. Now, Juan wants his Bike back, Travis can claim the money he paid for the bike from Boulder’s employee and then he will give the bike to its owner Juan. There is no mistake of Travis and he should not suffer from the loss of bike money. At last, both Juan and Travis will prevail and the employee who accidently sold the bike will be punished for his irresponsible act.