                                 CODE OF VIRGINIA

POWER TO TRANSFER; GOOD FAITH PURCHASE OF GOODS; &#8220;ENTRUSTING.&#8221; (§
8.2-403)

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 &#8220;cash sale,&#8221; 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. &#8220;Entrusting&#8221; 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&#8217;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 titles on secured transactions (Title 8.9A) and documents of title (Title
8.7).

HISTORY: Code 1950, § 6-558; 1964, c. 219; 1997, c. 121; 2011, c. 369.