If the owner entrusts goods to a merchant who deals in goods of that kind, the merchant does not have the power to transfer the entruster's title to anyone who buys in the ordinary course of business.

Question

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Under the principle of entrustment found in the Uniform Commercial Code (UCC), when an owner entrusts goods to a merchant who deals in goods of that kind, the merchant has the power to transfer all rights of the entruster to a buyer in the ordinary course of business, effectively giving the buyer good title to the goods.

If the Owner Entrusts Goods to a Merchant Who Deals