Title 11, Chapter 2, Section 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
(b) The delivery was in exchange for a check which is later
(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
(4) The rights of other purchasers of goods and of lien creditors
are governed by the articles on secured transactions (Article 9 of
this title), bulk transfers (Article 6 of this title), and documents
of title (Article 7 of this title).