2006 New York Code - Power To Transfer; Good Faith Purchase Of Goods; "entrusting"

 
  Section  2--403.  Power  to  Transfer;  Good  Faith  Purchase  of Goods;
                    "Entrusting".
    (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 has 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).