Anyone who entrusts goods to a merchant who regularly deals in such goods gives that merchant the power to give good title to a buyer in the ordinary course of business.

Question

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This is the principle of "entrustment" under the Uniform Commercial Code (UCC) in the United States. If a merchant regularly deals in a certain type of goods and someone entrusts those goods to them, the merchant has the power to transfer good title to a buyer who purchases the goods in the ordinary course of business, even if the original owner did not consent to the sale. This rule is intended to protect innocent purchasers who have no reason to suspect that the goods they are buying are stolen or otherwise illegitimate.

Anyone Who Entrusts Goods to a Merchant Who Regularly Deals