Kentucky Revised Statutes

Ky. Rev. Stat. § 355.2-403 (2026)

Power to transfer -- Good faith purchase of goods -- "Entrusting."

✓ current as of May 2026
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(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) and documents of title (Article 7). Effective: July 14, 1992 History: Amended 1992 Ky. Acts ch. 116, sec. 63, effective July 14, 1992. -- Created 1958 Ky. Acts ch. 77, sec. 2-403, effective July 1, 1960.

Notes of Decisions
Cited in 7 cases, 1968–2016 · leading case: Meade v. Richardson Fuel, Inc., 166 S.W.3d 55 (Ky. Ct. App. 2005).
Meade v. Richardson Fuel, Inc., 166 S.W.3d 55 (Ky. Ct. App. 2005). · cites it 3× “While the trial court characterized Richardson as a “bona fide purchaser,” KRS 355.2-403(1) uses the term "good faith purchaser.”
United Road Mach. Co. v. Jasper, 568 S.W.2d 242 (Ky. Ct. App. 1978). · cites it 3× “KRS 355.2-403(1). Thus if Consolidated Coal possessed good title to the truck scales, appellees in turn gained good title upon transfer.”
Foley v. Prod. Credit Ass'n of Fourth Dist., 753 S.W.2d 876 (Ky. Ct. App. 1988). · cites it 3× “” KRS 355.2-403. That section and its subparts provide that a person with voidable title has power to transfer a good title to a good faith purchaser for value.”
Kimberly & Eur. Diamonds, Inc. v. Burbank, 518 F. Supp. 599 (W.D. Ky. 1981). · cites it 2× “Burbank argues that Section 2-403 of the Uniform Commercial Code, KRS 355.2-403, is dispositive of his motion.”
Aventura Sportswear, Ltd. v. Maloney Enter., Inc. (In Re Maloney Enter., Inc.), 37 B.R. 290 (Bankr. E.D. Ky. 1983). “(3) The seller’s right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser or lien creditor under this Article (KRS 355.2-403). Successful reclamation of goods excludes all other remedies with respect to them.”
Universal C. I. T. Credit Corp. v. Middlesboro Motor Sales, Inc., 424 S.W.2d 409 (Ky. Ct. App. 1968). “” KRS 355.2-403(2) provides that where goods are entrusted to a dealer, he can give good title, but this section again requires that the one to be protected must be “a buyer in ordinary course of business.”
Baciomiculo, LLC v. Nick Bohanon, LLC, 498 S.W.3d 790 (Ky. Ct. App. 2016). · cites it 10× “Plaintiff respond[ed] that the Bohanon Defendants did not obtain absolute title to the Equipment from Lakeland; that the Bohanon Defendants did not obtain voidable title by way of KRS 355.2-403; that there remain genuine issues of material fact with regard to whether the Bohanon…”
— Ky. Rev. Stat. § 355.2-403(1) — 3 cases
Meade v. Richardson Fuel, Inc., 166 S.W.3d 55 (Ky. Ct. App. 2005). “While the trial court characterized Richardson as a “bona fide purchaser,” KRS 355.2-403(1) uses the term "good faith purchaser.”
United Road Mach. Co. v. Jasper, 568 S.W.2d 242 (Ky. Ct. App. 1978). “KRS 355.2-403(1). Thus if Consolidated Coal possessed good title to the truck scales, appellees in turn gained good title upon transfer.”
Baciomiculo, LLC v. Nick Bohanon, LLC, 498 S.W.3d 790 (Ky. Ct. App. 2016). “Plaintiff respond[ed] that the Bohanon Defendants did not obtain absolute title to the Equipment from Lakeland; that the Bohanon Defendants did not obtain voidable title by way of KRS 355.2-403; that there remain genuine issues of material fact with regard to whether the Bohanon…”
— Ky. Rev. Stat. § 355.2-403(2) — 2 cases
Universal C. I. T. Credit Corp. v. Middlesboro Motor Sales, Inc., 424 S.W.2d 409 (Ky. Ct. App. 1968). “” KRS 355.2-403(2) provides that where goods are entrusted to a dealer, he can give good title, but this section again requires that the one to be protected must be “a buyer in ordinary course of business.”
Baciomiculo, LLC v. Nick Bohanon, LLC, 498 S.W.3d 790 (Ky. Ct. App. 2016). “Plaintiff respond[ed] that the Bohanon Defendants did not obtain absolute title to the Equipment from Lakeland; that the Bohanon Defendants did not obtain voidable title by way of KRS 355.2-403; that there remain genuine issues of material fact with regard to whether the Bohanon…”
— Ky. Rev. Stat. § 355.2-403(4) — 1 case
Foley v. Prod. Credit Ass'n of Fourth Dist., 753 S.W.2d 876 (Ky. Ct. App. 1988). “” KRS 355.2-403. That section and its subparts provide that a person with voidable title has power to transfer a good title to a good faith purchaser for value.”
— Ky. Rev. Stat. § 355.2-403(l)(d) — 1 case
Foley v. Prod. Credit Ass'n of Fourth Dist., 753 S.W.2d 876 (Ky. Ct. App. 1988). “” KRS 355.2-403. That section and its subparts provide that a person with voidable title has power to transfer a good title to a good faith purchaser for value.”
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