(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:
(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 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.
(4) The rights of other purchasers of goods and of lien creditors are governed by the articles on secured transactions (Article 9), bulk transfers (Article 6) and documents of title (Article 7).
(Acts 1965, No. 549, p. 811.)
Notes of Decisions
HOC, Inc. v. McAllister (In re McAllister), 215 B.R. 217 (Bankr. N.D. Ala. 1996).
· cites it 4× “” Ala. Code 1975, § 7-2-403(2). "‘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…”
Woven Treasures, Inc. v. Hudson Capital, L.L.C., 46 So. 3d 905 (Ala. 2009).
“We pretermit discussion of whether Hudson Capital constituted a good-faith purchaser of the rugs under § 7-2-403, Ala.Code 1975, because we conclude that Hudson Capital had a superior security interest in the rugs.”
Ryan v. Patterson & Son Motors, 726 So. 2d 667 (Ala. Civ. App. 1998).
““Section 7-2-403 recognizes that a person with voidable title has power to transfer a good title to a good faith purchaser for value.”
Werhan v. Pinellas Seafood Co., 404 So. 2d 570 (Ala. 1981).
· cites it 6× “The first is whether one who purchases goods paid for by partial satisfaction of a pre-existing debt is a purchaser for value entitled to protection as a good faith purchaser for value under Code 1975, § 7-2-403. The second is whether the defendant, at trial, established…”
— Ala. Code § 7-2-403(1) — 2 cases
Werhan v. Pinellas Seafood Co., 404 So. 2d 570 (Ala. 1981).
“The first is whether one who purchases goods paid for by partial satisfaction of a pre-existing debt is a purchaser for value entitled to protection as a good faith purchaser for value under Code 1975, § 7-2-403. The second is whether the defendant, at trial, established…”
— Ala. Code § 7-2-403(2) — 1 case
HOC, Inc. v. McAllister (In re McAllister), 215 B.R. 217 (Bankr. N.D. Ala. 1996).
“” Ala. Code 1975, § 7-2-403(2). "‘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…”
— Ala. Code § 7-2-403(3) — 1 case
HOC, Inc. v. McAllister (In re McAllister), 215 B.R. 217 (Bankr. N.D. Ala. 1996).
“” Ala. Code 1975, § 7-2-403(2). "‘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…”
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