Power to transfer; good faith purchase of goods; “entrusting”.

(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 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 articles 7 and 9. Cited. 198 C. 624. Although merchant buyer had a heightened duty of inquiry because he had concerns about a party's ability to convey good title to a painting, trial court properly determined that merchant buyer was a buyer in the ordinary course of business and took all rights plaintiff had to the painting pursuant to Subsec. (2) because he took sufficient steps, under the circumstances of the case, to conform to reasonable commercial standards for the sale of artwork by retaining legal counsel to investigate title and by insisting on a formal contract of sale, containing warranties. 283 C. 65.