Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962

Mich. Comp. Laws § 440.2403

Purchasers and transferees; title, rights, and powers to transfer goods; entrusting.

Find cases: SyfertCases citing this section MI-LEGlegislature.mi.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.2403 Purchasers and transferees; title, rights, and powers to transfer goods; entrusting.

Sec. 2403.

    (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).

History: 1962, Act 174, Eff. Jan. 1, 1964

Notes of Decisions
Cited in 13 cases, 1971–2018 · leading case: Genesee Merchants Bank & Trust Co. v. Tucker Motor Sales
Sort: Relevance Newest Treatment
Genesee Merchants Bank & Trust Co. v. Tucker Motor Sales (1985) michctapp · cites it 8× “[8] MCL 440.2403(1); MSA 19.2403(1). [9] MCL 440.”
Karibian v. Paletta (1983) michctapp · cites it 2× “MCL 440.2403; MSA 19.2403. Specifically, the trial judge found that defendant Antonio Paletta was not a good faith bona fide purchaser for value: "[B]ecause he had knowledge of Colin Brook’s unreliability before the Silver Corvette was purchased; because *357 Brook was too…”
Jones v. Linebaugh (1971) michctapp · cites it 4× “" Furthermore, under UCC § 2-403 (MCLA § 440.2403), a person with a voidable title, such as the seller herein may have had, has power to transfer good title to a good faith purchaser, which buyer may have been in the present case.”
Rieth-Riley Construction Co. v. First Security Bank (In Re Williams Bros. Asphalt Paving Co.) (1986) miwb · cites it 2× “Mich.Comp. Laws § 440.2403 (1962) (Mich.Stat.”
In Re Dow Corning Corp. (1996) mieb · cites it 2× “In fact, the analogy cuts against the Debtor. Under the Uniform Commercial Code, a good faith purchaser for value is accorded treatment similar to the bona fide purchaser of real estate.”
Ladd v. Ford Consumer Finance Co., Inc. (1996) michctapp “The defendant in Jerry argued that the ucc entrustment provision, MCL 440.2403(2); MSA 19.2403(2), permitted a merchant to transfer the rights of an entruster of a boat to a buyer in the ordinary course of business, even though the merchant did not transfer a certificate of…”
Jerry v. Second National Bank (1994) michctapp · cites it 2× “The court’s decision relied on the following provision (the entrustment provision) from the ucc, MCL 440.2403(2); MSA 19.2403(2): Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him the power to transfer all rights of the entruster to a…”
Arthur Glick Truck Sales, Inc. v. Stuphen East Corp. (2012) nysd “See Mich. Comp. Laws Ann. § 440.2403 ; N.Y. U.”
Uni-Products, Inc. v. Bearse (In Re Uni-Products, Inc.) (1993) mieb · cites it 2× “Mich.Comp. Laws § 440.2403(1) (A party acquires voidable title — i.”
Kitchen v. Boyd (In re Newpower) (2000) ca6 “See Mich.Comp. Laws § 440.2403 (providing that “[a] purchaser of goods acquires all title which his transferor had”); 1 Thomas M.”
Nauman v. First National Bank (1973) michctapp “3 *45 If it is determined that the consignment was not intended as security, the questions whether Grate was "a merchant who deals in goods of that kind” and whether the purchasers were "buyers in ordinary course of business” within the meaning of MCLA 440.2403(2); MSA…”
United States v. Maritime Exch. Museum (2018) · cites it 2× “*553 Mich. Comp. Laws § 440.2403 . But that provides him no support.”
Show all 13 citing cases →
— Mich. Comp. Laws § 440.2403(1) — 2 cases
Genesee Merchants Bank & Trust Co. v. Tucker Motor Sales (1985) michctapp “[8] MCL 440.2403(1); MSA 19.2403(1). [9] MCL 440.”
Uni-Products, Inc. v. Bearse (In Re Uni-Products, Inc.) (1993) mieb “Mich.Comp. Laws § 440.2403(1) (A party acquires voidable title — i.”
— Mich. Comp. Laws § 440.2403(1)(b) — 1 case
Genesee Merchants Bank & Trust Co. v. Tucker Motor Sales (1985) michctapp “[8] MCL 440.2403(1); MSA 19.2403(1). [9] MCL 440.”
— Mich. Comp. Laws § 440.2403(2) — 4 cases
Ladd v. Ford Consumer Finance Co., Inc. (1996) michctapp “The defendant in Jerry argued that the ucc entrustment provision, MCL 440.2403(2); MSA 19.2403(2), permitted a merchant to transfer the rights of an entruster of a boat to a buyer in the ordinary course of business, even though the merchant did not transfer a certificate of…”
Jerry v. Second National Bank (1994) michctapp “The court’s decision relied on the following provision (the entrustment provision) from the ucc, MCL 440.2403(2); MSA 19.2403(2): Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him the power to transfer all rights of the entruster to a…”
Nauman v. First National Bank (1973) michctapp “3 *45 If it is determined that the consignment was not intended as security, the questions whether Grate was "a merchant who deals in goods of that kind” and whether the purchasers were "buyers in ordinary course of business” within the meaning of MCLA 440.2403(2); MSA…”
La Bair v. Mayville Feed & Grain, Inc. (In Re Mayville Feed & Grain, Inc.) (1989) mieb
— Mich. Comp. Laws § 440.2403(l)(b) — 1 case
Genesee Merchants Bank & Trust Co. v. Tucker Motor Sales (1985) michctapp “[8] MCL 440.2403(1); MSA 19.2403(1). [9] MCL 440.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.