| (1) |
A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title 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 purchaser has such power even though:
Terms Used In Utah Code 70A-2-403- Buyer: means a person who buys or contracts to buy goods. See Utah Code 70A-2-103
- Fraud: Intentional deception resulting in injury to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means :Utah Code 68-3-12.5
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
| (a) |
the transferor was deceived as to the identity of the purchaser; |
| (b) |
the delivery was in exchange for a check which is later dishonored; |
| (c) |
it was agreed that the transaction was to be a “cash sale”; or |
| (d) |
the delivery was procured through fraud punishable as larcenous under the criminal law. |
|
| (2) |
Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of business. |
| (3) |
“Entrusting” includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor’s disposition of the goods have been such as to be larcenous under the criminal law. |
Amended by Chapter 42, 2006 General Session
