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Case scenario
John Torniero was employed by Michaels Jewelers, Inc. (Michaels). During the course of his employment, Torniero stole pieces of jewelry, including several diamond rings, a sapphire ring, a gold pendant, and several loose diamonds. Over a period of several months, Torniero sold individual pieces of the stolen jewelry to G and W Watch and Jewelry Corporation. G and W had no knowledge of how Torniero obtained the jewels. Torniero was arrested when Michaels discovered the thefts. After Torniero admitted that he had sold the stolen jewelry to G and W, Michaels attempted to recover it from G and W. G-W claimed title to the jewelry as a good faith purchaser for value. Michaels challenged G and W's claim to title in court. Who wins? Did any party act unethically in this case?
Questions
1. Does this scenario involve a theft, fraud, or entrustment?
2. Does it matter if Torniero is considered a merchant in this case?
3. Does it matter if G and W is considered a merchant in this case?
4. Who wins this case - Torniero, G&W, or Micheals Jewelers?
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