Question

Woodridge USA Properties LP, bought eighty-seven commercial truck trailers from Southeast Trailer Mart, Inc. (STM). Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the document of title. They did not indicate that Woodridge was the buyer. Woodridge asked McCarty to sell the trailers, and within three months they were sold, but McCarty did not give the proceeds to Woodridge. Woodridge without mentioning the title documents, asked STM to refund the contract price. STM refused. Does Woodridge have a right to recover damages from STM? Explain.

Answer 1

No, Woodridge USA Properties has no right to recover damages from Southeast Trailer Mart, Inc. (STM).

Step-by-step explanation:

What happened here is that Woodridge bought the 97 trucks from STM and McCarty was the independent sales agent that carried out the operation. Then instead of doing all the proper paperwork at registering the trucks as their property, they decided to resell them using McCarty as an independent sales agent again.

Then McCarty, who wasn't STM's agent, resold the trucks and kept the money for himself. First of all, Woodridge never had title of the trucks and then it resold using an independent sales agent, so STM has no relation to Woodridge's bad decision.