<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2-403 - Power to transfer--Good faith purchase of goods--&quot;Entrusting&quot;. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073224Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073224SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073224CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073224Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073224DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073224Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073224Normal-000002 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073224000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073224SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073224SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073224Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-403"><span class="s2073224SENU">57A-2-403</span></a><span xml:space="preserve" class="s2073224SENU">. </span><span class="s2073224CL">Power to transfer--Good faith purchase of goods--"Entrusting".</span></p><p dir="ltr" class="s2073224Normal-000000"><span class="s2073224DefaultParagraphFont">(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</span></p><p dir="ltr" class="s2073224Normal-000001"><span class="s2073224DefaultParagraphFont">(a)    The transferor was deceived as to the identity of the purchaser; or</span></p><p dir="ltr" class="s2073224Normal-000001"><span class="s2073224DefaultParagraphFont">(b)    The delivery was in exchange for a check which is later dishonored; or</span></p><p dir="ltr" class="s2073224Normal-000001"><span class="s2073224DefaultParagraphFont">(c)    It was agreed that the transaction was to be a "cash sale"; or</span></p><p dir="ltr" class="s2073224Normal-000001"><span class="s2073224DefaultParagraphFont">(d)    The delivery was procured through fraud punishable as theft under the criminal law.</span></p><p dir="ltr" class="s2073224Normal-000002"><span class="s2073224DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2073224Normal-000002"><span class="s2073224DefaultParagraphFont">(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 theft under the criminal law.</span></p><p dir="ltr" class="s2073224Normal-000002"><span xml:space="preserve" class="s2073224DefaultParagraphFont">(4) The rights of other purchasers of goods and of lien creditors are governed by the chapters on secured transactions (chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9"><span class="s2073224DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s2073224DefaultParagraphFont">) and documents of title (chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-7"><span class="s2073224DefaultParagraphFont">57A-7</span></a><span class="s2073224DefaultParagraphFont">).</span></p><p dir="ltr" class="s2073224Normal"><span xml:space="preserve" class="s2073224000003"> </span></p><p dir="ltr" class="s2073224Normal"><span class="s2073224SCL">Source:</span><span xml:space="preserve" class="s2073224SCL-000004"> SL 1966, ch 150, § 2-403; SDCL §§ 57-5-9 to 57-5-12; SL 1980, ch 23, §§ 2, 27; SL 1993, ch 356, § 3.</span></p></div></body></html>