Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?
A) The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
B) The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
C) The merchant can only transfer void title until any funds in the possession of the merchant are transferred to the owner.
D) The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.
E) The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.

Question

Quizplus · Accepted Answer

The merchant can transfer all rights in the goods to a buyer in the ordinary course of business. This principle is based on the doctrine of entrustment found in commercial and contract law, which allows a merchant who is entrusted with goods to pass on full title to a buyer in the ordinary course of business, even if the merchant does not have full ownership of the goods.

Which of the Following Is True If an Owner Entrusts