solution

Donald and Hugh were both members of gemstone clubs. They met at a meeting. Hugh had a stand with the sign:

For Sale: Mixed Gemstones at Marked Prices

Donald was looking for a stone suitable for setting in a ring. He selected a stone priced $450.00 and purchased it from Hugh. The stone Donald purchased was later identified as a topaz. Donald wishes to return the stone to Hugh and claim his money back.

Discuss Donald’s rights and the legal implications of each of the following possible situations.

1. Although there was no discussion, both Donald and Hugh believed it was a rough diamond.
2. Donald believed the stone was a rough diamond but did not discuss his belief with Hugh, who knew it was a topaz.
3. Donald told Hugh he was pleased to find a diamond. Hugh did not correct him.
4. Hugh was the club’s expert on diamonds and offered the stone to Donald assuring him that it was a diamond, as he honestly believed it to be.