The Scenario:

• Day-1: Person-A owns Car-X
• Day-2: Person-B steals Car-X
• Day-3: Person-B sells Car-X to Person-C

Also consider:

• (3a): Person-C has no knowledge of the prior theft.
• (3b): Person-C knows the car is stolen, and purchases it anyway.

Question:

• Who is the rightful owner of Car-X on Day #3?
• Does Person-C's knowledge of the theft change your answer?
• Which person(s) owe restitution to which person(s) if you were to arbitrate this case?

I have my own answers and reasoning, but would like to leave this question open-ended, without too much prior bias.

*edit: Scenario-2 *

For those who answered "Person-C is the rightful owner," is that different from:

• Day-1: Person-A owns Car-X
• Day-2: ???
• Day-3: Person-B sells Car-X to Person-C

....and how does selling property that one does not own fit into your theory of property?

edit 2

I was holding off on posting this, until there were some replies. Here are some of Rothbard's thoughts:

https://mises.org/daily/4047