Home › MCQs › UCC Contracts › Question #5856
Back to Questions
UCC Contracts QUESTION #5856
Question 1
An Owner leaves a watch at a Jewelry Store for repair. The Jeweler (who also sells watches) accidentally sells it to a regular customer. Can the Owner get the watch back from the customer?
  • Yes, because the Jeweler didn't own the watch.
  • No, the customer is a 'Buyer in the Ordinary Course of Business'.✔️
  • Yes, because the customer should have checked the serial number.
  • No, unless the customer knew the watch was used.
Correct Answer Explanation
Under the 'Entrustment Rule' (UCC §2-403(2)), entrusting goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights to a buyer in the ordinary course of business.