If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant cannot transfer ownership rights in the good to a buyer in the ordinary course of business.

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If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant can either fraudulently or accidentally transfer all rights in the good to a buyer in the ordinary course of business.If the purchaser is a good-faith purchaser,then that purchaser gets good title.The original owner's only recourse is to bring suit against the merchant.The rationale behind this concept is the facilitation of commercial activity regarding good-faith purchasers in the marketplace.

If an Owner Entrusts the Possession of Goods to a Merchant