Entrusting goods to a merchant who deals in goods of the kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business.

Question

Quizplus · Accepted Answer

This statement is in line with the concept of entrustment under the Uniform Commercial Code (UCC), which allows a merchant who regularly deals in goods of a kind to transfer ownership of the goods to a buyer in the ordinary course of business. This applies even if the original owner did not authorize the specific sale, as long as the merchant was entrusted with the goods.

Entrusting Goods to a Merchant Who Deals in Goods of the Kind