§ 34.1-2-403 — Power to transfer; good faith purchase of goods; "entrusting"

(a) A purchaser of goods acquires all title which his
transferor has 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:
(i) The transferor was deceived as to the identity of
the purchaser; or
(ii) The delivery was in exchange for a check which
is later dishonored; or
(iii) It was agreed that the transaction was to be a
"cash sale"; or
(iv) The delivery was procured through fraud
punishable as larcenous under the criminal law.
(b) 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) "Entrusting" includes any delivery and any
acquiescence in retention of possession regardless of any
condition expressed between the parties to the delivery of
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.
(d) The rights of other purchasers of goods and of lien
creditors are governed by the articles on secured transactions
(article 9) and documents of title (article 7).
PART 5
PERFORMANCE