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Source UCC Article 2 Sales Delaware Bar Exam Topic Index Matched to this deck.

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Owner leaves a rare watch with Watch Shop, a merchant that sells and repairs watches, under a consignment form authorizing Watch Shop to display the watch and obtain offers of at least $8,000. The form requires Watch Shop to call Owner before accepting any offer. Watch Shop wrongfully sells the watch from its display case to Buyer for $8,400. Buyer buys in ordinary course at a normal price and has no notice of Owner's approval condition.
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A cleaning-only delivery to a watch merchant always gives the merchant the same power to transfer Owner's rights. Entrustment protects only buyers who personally inspect the owner's original paperwork. Because Owner entrusted the watch to a watch merchant for sale or offers, Watch Shop had power to transfer Owner's rights to a buyer in ordinary course despite violating Owner's approval condition. Entrustment makes the merchant the permanent owner before any resale occurs.

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