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Source Contract Interpretation Complete Contracts and UCC Article 2 List Matched to this deck.

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0 tracked cards Contracts

An owner left a vintage watch with a jewelry dealer for cleaning. The dealer regularly sold watches of that kind. Without authority, the dealer sold the watch from its display case to a customer who bought in good faith and without knowledge of the owner's claim.
Which statement best describes the customer's title under Article 2?

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A buyer in ordinary course from the dealer may obtain good title because entrusting goods to a merchant who deals in goods of that kind can give the merchant power to transfer the entruster's rights. The buyer cannot obtain title because a merchant can never transfer better title than the merchant personally owns. The buyer cannot obtain title because entrustment rules apply only to banks. The buyer cannot obtain title because Article 2 never affects ownership rights.

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