2007 Minnesota Statutes

336.2-403 POWER TO TRANSFER; GOOD FAITH PURCHASE OF GOODS;
"ENTRUSTING".
(1) A purchaser of goods acquires all title which the purchaser's 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
(a) the transferor was deceived as to the identity of the purchaser, or
(b) the delivery was in exchange for a check which is later dishonored, or
(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
the merchant 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.
(4) 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).
History: 1965 c 811 s 336.2-403; 1986 c 444; 1991 c 171 art 2 s 2