§ 6A-2-403 - Power to transfer – Good faith purchase of goods – "Entrusting". - Rhode Island Statutes

SECTION 6A-2-403

   § 6A-2-403  Power to transfer – Goodfaith purchase of goods – "Entrusting". – (1) A purchaser of goods acquires all title which his or her transferor had orhad power to transfer except that a purchaser of a limited interest acquiresrights only to the extent of the interest purchased. A person with voidabletitle has power to transfer a good title to a good faith purchaser for value.When goods have been delivered under a transaction of purchase the purchaserhas such power even though:

   (a) The transferor was deceived as to the identity of thepurchaser, or

   (b) The delivery was in exchange for a check which is laterdishonored, or

   (c) It was agreed that the transaction was to be a "cashsale", or

   (d) The delivery was procured through fraud punishable aslarcenous under the criminal law.

   (2) Any entrusting of possession of goods to a merchant whodeals in goods of that kind gives him or her power to transfer all rights ofthe entruster to a buyer in ordinary course of business.

   (3) "Entrusting" includes any delivery and any acquiescencein retention of possession, regardless of any condition expressed between theparties to the delivery or acquiescence and regardless of whether theprocurement of the entrusting or the possessor's disposition of the goods havebeen such as to be larcenous under the criminal law.

   (4) The rights of other purchasers of goods and of liencreditors are governed by the chapters on secured transactions (chapter 9) anddocuments of title (chapter 7).