Rhode Island General Laws

R.I. Gen. Laws § 6A-2-403 (2026)

Power to transfer — Good faith purchase of goods — “Entrusting”

✓ current as of July 2026
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(1) A purchaser of goods acquires all title which his or her 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 or her 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 chapters on secured transactions (chapter 9) and documents of title (chapter 7).

Notes of Decisions
Cited in 2 cases, 1997–2014 · leading case: Alex & Ani, LLC v. Elite Level Consulting, LLC, 31 F. Supp. 3d 365 (D.R.I. 2014).
Alex & Ani, LLC v. Elite Level Consulting, LLC, 31 F. Supp. 3d 365 (D.R.I. 2014). · cites it 2× “” R.I. Gen. Laws § 6A-2-403(l). “Good faith” is defined as “honesty in fact in the conduct or transaction concerned.”
DeWeldon, Ltd. v. McKean, 125 F.3d 24 (1st Cir. 1997). · cites it 2× “*27 R.I. Gen. Laws § 6A-2-403(2). 5 “ ‘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…”
R.I. Gen. Laws § 6A-2-403(2): 1 case
DeWeldon, Ltd. v. McKean, 125 F.3d 24 (1st Cir. 1997). “*27 R.I. Gen. Laws § 6A-2-403(2). 5 “ ‘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…”
R.I. Gen. Laws § 6A-2-403(3): 1 case
DeWeldon, Ltd. v. McKean, 125 F.3d 24 (1st Cir. 1997). “*27 R.I. Gen. Laws § 6A-2-403(2). 5 “ ‘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…”
R.I. Gen. Laws § 6A-2-403(l): 1 case
Alex & Ani, LLC v. Elite Level Consulting, LLC, 31 F. Supp. 3d 365 (D.R.I. 2014). “” R.I. Gen. Laws § 6A-2-403(l). “Good faith” is defined as “honesty in fact in the conduct or transaction concerned.”
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