N.Y. Uniform Commercial Code Law § 2-403: 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).