A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.

(Repealed and added by Stats. 2006, Ch. 254, Sec. 49. Effective January 1, 2007.)

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Terms Used In California Commercial Code 7205

  • Buyer in ordinary course of business: means a person that buys goods in good faith, without knowledge that the sale violates the rights of another person in the goods, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind. See California Commercial Code 1201
  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See California Commercial Code 7102
  • Warehouse: means a person engaged in the business of storing goods for hire. See California Commercial Code 7102
  • Warehouse receipt: means a receipt issued by a person engaged in the business of storing goods for hire. See California Commercial Code 1201