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Question: Medico Leasing Company gave possession of a car to Smith, a merchant engaged in the used-car business. It was agreed that Smith would sell the car for Medico. Smith sold the car to Wessell Buick Co. but kept the money. Medico sued Smith. Because Smith had no money, Medico then tried to recover the car from Wessell Buick.
Wessell Buick claimed that it had purchased the car from Smith, a merchant, in good faith and had every right to keep the car. Was Wessell Buick entitled to keep the car? (Medico Leasing Company v. Smith, 457 Okla. 2d 548)
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