Reference no: EM131657642

Question: In December 1990, Arlene Bradley entered Alsafi Oriental Rugs and advised the owner that she was an interior decorator and that she was interested in selling some of his rugs to one of her customers. Alsafi did not know Bradley and had never done business with her. However, he allowed her to take three rugs out on consignment with the understanding that she would return them if her customer was not interested. In fact, however, Bradley was not obtaining the rugs for a "customer" but was instead working for another individual, Walid Salaam, a rug dealer. A friend of Bradley's had introduced her to Salaam earlier. Salaam had advised the two women that he was the owner of a recently closed oriental rug store that he was attempting to reopen. He offered to teach them how to become decorators and told them that when his store reopened, they could operate out of the store. Salaam advised them that until he got his store restocked, however, he wanted them to "check out" rugs on approval from other rug dealers in town. As they had no experience with oriental rugs, Salaam instructed them which rugs to look for. He then instructed them to go to rug dealers in Memphis and advise them that they were interior decorators with customers that wanted to purchase oriental rugs. After Bradley obtained possession of the three rugs from Alsafi, she turned them over to Salaam, who in turn took them to a pawnshop operated by the American Loan Company. There Salaam pawned the rugs, obtaining approximately $5,000 after filling out the required paperwork. Salaam failed to redeem the rugs. Following the default, the pawnshop gave the appropriate notice that it intended to dispose of them. In April 1991 Alsafi learned that his rugs were at the pawnshop. After visiting the pawnshop and identifying the three rugs as his, he brought suit to recover possession of them. Was Alsafi entitled to recover the rugs from the pawnshop?