(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:
The transferor was deceived as to the identity of the purchaser, or
The delivery was in exchange for a check which is later dishonored, or
It was agreed that the transaction was to be a "cash sale", or
The delivery was procured through fraud punishable as larcenous under the criminallaw.
(1.5) Notwithstanding any other provision of this section, when livestock have been delivered under a transaction of purchase and on the accompanying brand inspection certificate or memorandum of brand inspection certificate the seller has conspicuously noted that payment of the consideration for the transaction has not been received, the buyer does not have power to transfer good title to a good faith purchaser for value until payment is made.
Any entrusting of possession of goods to a merchant who deals in goods of that kindgives him power to transfer all rights of the entruster to a buyer in ordinary course of business.
"Entrusting" includes any delivery and any acquiescence in retention of possessionregardless 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.
The rights of other purchasers of goods and of lien creditors are governed by thearticles on secured transactions (article 9 of this title) and documents of title (article 7 of this title).
Source: L. 65: p. 1320, § 1. C.R.S. 1963: § 155-2-403. L. 75: (1.5) added, p. 232, § 3, effective June 20. L. 91: (4) amended, p. 270, § 4, effective July 1.
Editor's note - Colorado legislative change: Colorado added subsection (1.5). There is no counterpart to subsection (1.5) in the uniform act. Colorado adopted Revised Article 6 - Bulk Sales (Alternative B) which was repealed in 1991 and the corresponding reference to "bulk sales" was deleted in subsection (4) in 1991.