Paul Reynolds used the Trek website to purchase a racing bike with a frame utilizing a newly developed high-strength but lightweight alloy. He selected the model he wanted and provided the company with the necessary information to place the $2,200 purchase price and $75 shipping costs on his Visa card. The bicycle was damaged during shipment when the box was punctured by a forklift truck that was loading other boxes onto the carrier’s truck. Paul took the damaged bicycle to a local bicycle dealer to have it repaired. After the bicycle was repaired, but before Paul could pick it up, a clerk in the store, by mistake, sold the bicycle for $1,500 to Melissa Stevenson, who bought it as a birthday gift for her boyfriend.

1) Between Paul and Trek, who had the risk of loss or damage to the bicycle during the time it was under shipment to him and why?

2) Would Paul be entitled to recover possession of the bicycle from Melissa and her boyfriend, why?