Under the entrustment rule,a merchant can transfer title in goods to a buyer in the ordinary course of business.

Question

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The entrustment rule allows a merchant to transfer title in goods to a buyer in the ordinary course of business, even if the merchant does not own the goods. This protects a buyer who purchases goods from a merchant who may not actually own the goods but has them in their possession. As long as the buyer purchases the goods in good faith, the buyer will acquire title to the goods, even if the true owner of the goods is someone else.

Under the Entrustment Rule,a Merchant Can Transfer Title in Goods