Asked by Binay Bhandari on Sep 30, 2024
Verified
To qualify as a buyer in the ordinary course of business,the buyer must transact in good faith and without knowledge that the transaction may violate the ownership rights of a third party.
Buyer in Ordinary
Refers to a purchaser of goods who buys from someone who usually sells such goods, thereby granting certain legal protections under commercial law.
Good Faith
A principle requiring parties to act honestly and not mislead or withhold critical information in transactions.
Ownership Rights
The legal rights that confer control and discretion over property, including the rights to use, sell, or lease it.
- Ascertain the scenarios in which a buyer or seller holds legitimate title to merchandise.
Verified Answer
AE
Ashley Escobarabout 10 hours ago
Final Answer :
True
Explanation :
A buyer in ordinary course is a person who in good faith and without knowledge that the sale to him is in violation of the ownership rights of a third party buys goods in the ordinary course of business of a person selling goods of that kind,other than a pawnbroker.
Learning Objectives
- Ascertain the scenarios in which a buyer or seller holds legitimate title to merchandise.