1. transferee paid value not a gift thus, “earned” protection
TRANSCRIPT
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Bona Fide Purchaser
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The Situation
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Common Law BFP Elements
1. Transferee paid value
Not a gift Thus, “earned” protection
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Common Law BFP Elements
2. Transferee had no notice of true owner’s claim
Thus, “deserved” protection
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U.C.C. BFP Basic Idea -- § 2-403
A purchaser of goods acquires all title which the transferor (bailee) either:
Actually had, or Had the power to transfer▪ Expressly from true owner, or▪ Implied by law.
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U.C.C. BFP Elements -- § 2-403
1. True owner “entrusts” goods
Generally, a bailment Not an acquisition by theft
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U.C.C. BFP Elements -- § 2-403
2. The “evil” bailee is a merchant
The transferor sells goods as a business
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U.C.C. BFP Elements -- § 2-403
3. Merchant (bailee) deals with goods of the kind
Merchant (bailee/seller) sells the same type of goods as those the true owner entrusted.
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U.C.C. BFP Elements -- § 2-403
4. Transferee (Purchaser) is a “buyer in the ordinary course of business” (BIOCOB)
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U.C.C. BFP Elements -- § 2-403
4. Transferee (Purchaser) is a “buyer in the ordinary course of business” (BIOCOB)
A. Good faith▪ Honesty in fact (subjective), plus▪ Observance of reasonable commercial
standards (objective).
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U.C.C. BFP Elements -- § 2-403
4. Transferee (Purchaser) is a “buyer in the ordinary course of business” (BIOCOB)
A. Good faith B. Without knowledge that sale
violates ownership rights of entruster
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U.C.C. BFP Elements -- § 2-403
4. Transferee (Purchaser) is a “buyer in the ordinary course of business” (BIOCOB)
A. Good faith B. Without knowledge that sale
violates ownership rights of entruster
C. Pays value▪ Not a gift
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Porter v. Wertz
Maurice Utrillo
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Porter v. Wertz
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Porter v. Wertz
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Porter v. Wertz
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Porter v. Wertz
e
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Porter v. Wertz
Why is Feigen not a BIOCOB?
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Sheridan Suzuki
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Certificate of Title