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Power to transfer; good faith purchase of goods;

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     § 2403.  Power to transfer; good faith purchase of goods;
                "entrusting."
        (a)  Transfer of title.--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:
            (1)  the transferor was deceived as to the identity of
        the purchaser;
            (2)  the delivery was in exchange for a check which is
        later dishonored;
            (3)  it was agreed that the transaction was to be a "cash
        sale"; or
            (4)  the delivery was procured through fraud punishable
        as larcenous under the criminal law.
        (b)  Transfer by merchant entrusted with possession of
     goods.--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.
        (c)  Definition of "entrusting".--"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 disposition of the goods by
     the possessor has been such as to be larcenous under the
     criminal law.
        (d)  Rights of other purchasers and lien creditors.--The
     rights of other purchasers of goods and of lien creditors are
     governed by Division 7 (relating to documents of title) and
     Division 9 (relating to secured transactions).
     (July 9, 1992, P.L.507, No.97, eff. one year)

        1992 Amendment.  Act 97 amended subsec. (d).
        Cross References.  Section 2403 is referred to in sections
     2103, 2702, 2A103, 7503, 9315 of this title.

Last modified: November 27, 2007