If an owner entrusts the possession of his or her goods to a merchant who deals in goods of that kind,the merchant does not have the power to transfer all rights (including title)in the goods to a buyer in the ordinary course of business.

Question

Quizplus · Accepted Answer

If a merchant deals in goods of that kind, and the buyer purchases the goods in the ordinary course of business, then the merchant does have the power to transfer all rights (including title) in the goods to the buyer. This is known as the "merchant's exception" to the general rule of entrustment.

If an Owner Entrusts the Possession of His or Her