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§12A-2-403.


§12A-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).
   

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