Question: Club Pro Golf Products was a distributor of golf products
Club Pro Golf Products was a distributor of golf products. It employed salespeople who called on customers to take orders for merchandise. The merchandise was sent by Club Pro directly to the purchaser, and payment was made by the purchaser directly to Club Pro. A salesman for Club Pro, Carl Gude, transmitted orders for certain merchandise to Club Pro for delivery to several fictitious purchasers. Club Pro sent the merchandise to the fictitious purchasers at the fictitious addresses where it was picked up by Gude. Gude then sold the merchandise, worth approximately $19,000, directly to Simpson, a golf pro at a golf club. Gude then retained the proceeds of sale for himself. Club Pro discovered the fraud and brought suit against Simpson to recover the merchandise. Did Simpson get good title to the merchandise he purchased from Gude even though Gude had obtained it by fraud?
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