§490:2-403  Power to transfer; good faith
purchase of goods; "entrusting".  (1)  A purchaser of goods
acquires all title which his transferor had or had power to transfer except
that a purchaser of a limited interest acquires rights only to the extent of the
interest purchased.  A person with voidable title has power to transfer a good
title to a good faith purchaser for value.  When goods have been delivered
under a transaction of purchase the purchaser has such power even though:



(a) The transferor was deceived as to the identity of
the purchaser, or



(b) The delivery was in exchange for a check which is
later dishonored, or



(c) It was agreed that the transaction was to be a
"cash sale", or



(d) The delivery was procured through fraud
punishable as larcenous under the criminal law.



(2)  Any entrusting of possession of goods to a
merchant who deals in goods of that kind gives him power to transfer all rights
of the entruster to a buyer in ordinary course of business.



(3)  "Entrusting" includes any delivery
and any acquiescence in retention of possession regardless of any condition
expressed between the parties to the delivery or acquiescence and regardless of
whether the procurement of the entrusting or the possessor's disposition of the
goods have been such as to be larcenous under the criminal law.



(4)  The rights of other purchasers of goods
and of lien creditors are governed by the articles on secured transactions
(article 9) and documents of title (article 7). [L 1965, c 208, §2-403; HRS
§490:2-403; am L 1991, c 119, §3; am L 1998, c 209, §2]