Goods that have been entrusted to a merchant may be sold by that merchant even when the merchant has been told not to sell the goods, and when a merchant sells such goods to a buyer in the ordinary course of business, that buyer has title that is superior to the title of the original owner who entrusted them to the merchant.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a buyer in the ordinary course of business can obtain good title to goods even if the merchant was not authorized to sell them, as long as the buyer was unaware of any restrictions.

Goods That Have Been Entrusted to a Merchant May Be