Power to transfer--good faith purchase of goods--"entrusting".
400.2-403. (1) A purchaser of goods acquires all titlewhich his transferor had or had power to transfer except that apurchaser of a limited interest acquires rights only to theextent of the interest purchased. A person with voidable titlehas power to transfer a good title to a good faith purchaser forvalue. When goods have been delivered under a transaction ofpurchase the purchaser has such power even though
(a) the transferor was deceived as to the identity of thepurchaser, or
(b) the delivery was in exchange for a check which is laterdishonored, or
(c) it was agreed that the transaction was to be a "cashsale", or
(d) the delivery was procured through fraud punishable aslarcenous under the criminal law.
(2) Any entrusting of possession of goods to a merchant whodeals in goods of that kind gives him power to transfer allrights of the entruster to a buyer in ordinary course ofbusiness.
(3) "Entrusting" includes any delivery and any acquiescencein retention of possession regardless of any condition expressedbetween the parties to the delivery or acquiescence andregardless of whether the procurement of the entrusting or thepossessor's disposition of the goods have been such as to belarcenous under the criminal law.
(4) The rights of other purchasers of goods and of liencreditors are governed by the articles of secured transactions(article 9), bulk transfers (article 6) and documents of title(article 7).
Power to transfer--good faith purchase of goods--"entrusting".
400.2-403. (1) A purchaser of goods acquires all titlewhich his transferor had or had power to transfer except that apurchaser of a limited interest acquires rights only to theextent of the interest purchased. A person with voidable titlehas power to transfer a good title to a good faith purchaser forvalue. When goods have been delivered under a transaction ofpurchase the purchaser has such power even though
(a) the transferor was deceived as to the identity of thepurchaser, or
(b) the delivery was in exchange for a check which is laterdishonored, or
(c) it was agreed that the transaction was to be a "cashsale", or
(d) the delivery was procured through fraud punishable aslarcenous under the criminal law.
(2) Any entrusting of possession of goods to a merchant whodeals in goods of that kind gives him power to transfer allrights of the entruster to a buyer in ordinary course ofbusiness.
(3) "Entrusting" includes any delivery and any acquiescencein retention of possession regardless of any condition expressedbetween the parties to the delivery or acquiescence andregardless of whether the procurement of the entrusting or thepossessor's disposition of the goods have been such as to belarcenous under the criminal law.
(4) The rights of other purchasers of goods and of liencreditors are governed by the articles of secured transactions(article 9), bulk transfers (article 6) and documents of title(article 7).
Power to transfer--good faith purchase of goods--"entrusting".
400.2-403. (1) A purchaser of goods acquires all titlewhich his transferor had or had power to transfer except that apurchaser of a limited interest acquires rights only to theextent of the interest purchased. A person with voidable titlehas power to transfer a good title to a good faith purchaser forvalue. When goods have been delivered under a transaction ofpurchase the purchaser has such power even though
(a) the transferor was deceived as to the identity of thepurchaser, or
(b) the delivery was in exchange for a check which is laterdishonored, or
(c) it was agreed that the transaction was to be a "cashsale", or
(d) the delivery was procured through fraud punishable aslarcenous under the criminal law.
(2) Any entrusting of possession of goods to a merchant whodeals in goods of that kind gives him power to transfer allrights of the entruster to a buyer in ordinary course ofbusiness.
(3) "Entrusting" includes any delivery and any acquiescencein retention of possession regardless of any condition expressedbetween the parties to the delivery or acquiescence andregardless of whether the procurement of the entrusting or thepossessor's disposition of the goods have been such as to belarcenous under the criminal law.
(4) The rights of other purchasers of goods and of liencreditors are governed by the articles of secured transactions(article 9), bulk transfers (article 6) and documents of title(article 7).
