B-84 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 20
The court held that First Team “occup[ied] the status of a good faith buyer in the ordinary course of
business.” Thus, it was not required to return the tractor. The court pointed out that the “primary
rationale behind the entrusting provisions is aimed at protecting the buyer who purchases the entrusted
20-4A. Sales by nonowners
(Chapter 20—Pages 386–387)
No. A seller has voidable title to any goods obtained by fraud, paid for by a check that is later
dishonored, purchased on credit when the seller is insolvent, or purchased from a minor. A seller with
20-5A. Entrustment rule
(Chapter 20—Pages 387–389)
The court noted that UCC 2–403(2) provides that “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 the