Detailed Answer
(d) If a person entrusts possession of goods to a merchant
who normally deals in that type of goods, a good-faith purchaser
obtains title to those goods. Jake purchased the bike as he
was unaware that Pete did not own the bike. As a good-faith
purchaser, he obtains title to the bike. Answer (a) is incorrect
because Yancie cannot repossess the bike from Jake because Jake
obtained good title to the bike. Yancie can, however, get the
value of the bike from Pete. Answer (b) is incorrect because Jake
obtains title to the bike and, thus, Pete cannot repossess it from
him. Answer (c) is incorrect because Yancie can recover the
value of the bike from Pete, not Jake.