12.02.020 Power to Transfer; Good Faith Purchaser of Goods

(a) 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 imperfect or voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been acquired under a purchase transaction, the purchaser has such power even though:

(1) The original seller was deceived as to the true identity of the purchaser; or

(2) The delivery was in exchange for a check which is later dishonored; or

(3) It was agreed that the transaction was to be a cash sale; or

(4) The delivery was procured through fraud punishable as a crime.

(b) 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 person who so entrusts the goods to a buyer in ordinary course of business.

(c) "Entrusting" includes any delivery and any giving up of possession regardless of any condition expressed between the parties to the delivery or giving up of possession, and regardless of whether the procurement of the entrusting or the disposition of the goods have been such as to be larcenous under the criminal law.