Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?
A)The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
B)The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
C)The merchant can only transfer void title until the owner approves the sale.
D)The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.
E)The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.

Question

Quizplus · Accepted Answer

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind,the merchant can transfer all rights in the goods to a buyer in the ordinary course of business.If the purchaser is a good-faith purchaser (in other words,did not know that the item belonged to someone else and paid a fair market value,not some unreasonable discounted value),then that purchaser gets good title.The original owner's only recourse is to bring suit against the merchant.The rationale behind this concept is the facilitation of commercial activity regarding good-faith purchasers in the marketplace.

Which of the Following Is True If an Owner Entrusts