The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 672
UNIFORM COMMERCIAL CODE: SALES

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F.S. 672.403

672.403 Power to transfer; good faith purchase of goods; “entrusting.”—

(1) A purchaser of goods acquires all title which her or 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:

(a) The transferor was deceived as to the identity of the purchaser, or

(b) The delivery was in exchange for a check which is later dishonored, or

(d) The delivery was procured through fraud punishable as larcenous under the criminal law.

(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business.

(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 larcenous under the criminal law.

(4) The rights of other purchasers of goods and of lien creditors are governed by the chapters on secured transactions (chapter 679) and documents of title (chapter 677).

History.—s. 1, ch. 65-254; s. 2, ch. 93-77; s. 576, ch. 97-102.

Note.—s. 2-403, U.C.C.; supersedes s. 673.09.

F.S. 672.403 on Google Scholar

F.S. 672.403 on Casetext

Amendments to 672.403

Arrestable Offenses / Crimes under Fla. Stat. 672.403

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 672.403.

Annotations, Discussions, Cases:

Cases from cite.case.law:

In ORANGE ROSE, LLC d b a, 446 B.R. 543 (Bankr. M.D. Fla. 2011)

. . . As stated by the court, the entrustment provision contained in section 672.403 does not apply “unless . . . Stat. § 672.403(2) (2008). . Woolverton, 99 So.2d at 290. . Id. (quoting Hamner v. . . .

NORTHERN INSURANCE COMPANY OF NEW YORK, v. SEARAY MODEL YACHT, No. U. S. No. No. s U. S. C. G. LLC, a M. III,, 453 F. Supp. 2d 905 (D.S.C. 2006)

. . . . § 672.403(1), Fla. Stat. (1989); Green Tree Acceptance, Inc. v. . . .

In AQUAMARINE USA, INC., 330 B.R. 280 (Bankr. M.D. Fla. 2005)

. . . Section § 672.403 of the Florida Uniform Commercial Code addresses the entrustment of goods and provides . . . Ann. § 672.403(2) (West 2004). . . . ANN. § 672.403(3) (West 2004). . . . Acquiescence in a consignment relationship by the lien holder constitutes entrustment pursuant to § 672.403 . . . Ann. § 672.403(4) (West 2004). . . .

MAROONE CHEVROLET, L. L. C. a v. SUNTRUST BANK, USA a J. L. L. C. a d b a J. J. A. Y. V. L. E. L., 904 So. 2d 618 (Fla. Dist. Ct. App. 2005)

. . . According to SunTrust’s complaint, an entrustment as contemplated by section '672.403(2), Florida Statutes . . . See § 672.403(3), Fla. Stat. . . . The term entrustment, according to section 672.403(3), Florida Statutes, “includes any delivery and any . . . See § 672.403, Fla. Stat. The. . . . Furthermore, the purpose of section 672.403(2) “is to place on the owner the burden of losing his property . . .

In AQUAMARINE USA INC., 319 B.R. 270 (Bankr. M.D. Fla. 2004)

. . . Section 672.403(2), Florida Statutes, provides: Any entrusting of possession of goods to a merchant who . . . Stat. § 672.403(2) are present in the instant case. . . . Section 672.403(2) promotes the free flow of commerce by transferring superior rights to buyers in the . . . Stat. § 672.403(2) transfers superior rights to the Purchaser above the rights of the Seller. . . . Stat. § 672.403(3) provides ''[entrusting includes any delivery .... ” . . .

LE DAUPHIN CONDOMINIUM ASSOCIATION, INC. a Le v. GROUNDWORKS OF PALM BEACH COUNTY, INC., 719 So. 2d 13 (Fla. Dist. Ct. App. 1998)

. . . . §§ 672.401(2), 672.403, Fla. Stat. (1993). . . . Section 672.403(l)(a), Florida Statutes (1993), provides: (1) A purchaser of goods acquires all title . . .

In AFFILIATED OF FLORIDA, INC. v., 237 B.R. 495 (Bankr. M.D. Fla. 1998)

. . . purchaser, and a creditor with a perfected security interest constitutes a good faith purchaser under § 672.403 . . . subject to the rights of a buyer in ordinary course or other good faith purchaser under the chapter (s.672.403 . . . of reclamation, however, is subject to the rights of a good faith purchaser within the meaning of § 672.403 . . . It appears well-established that a secured creditor is a “purchaser” for purposes of § 672.403 of the . . . Consequently, a secured creditor is a “purchaser” for purposes of § 672.403 of the Florida Statutes. . . .

ORLANDO DODGE, INC. v. FIRST UNION NATIONAL BANK,, 661 So. 2d 322 (Fla. Dist. Ct. App. 1995)

. . . Green Tree involved the interpretation of section 672.403(2), Florida Statutes (1989), part of Florida . . . The court further noted that “section 672.403(2) may [in any event] have a limited application with respect . . . inquire as to the condition of title and they are not otherwise entitled to the protection of section 672.403 . . .

ALAMO RENT- A- CAR, INC. v. WILLIAMSON CADILLAC COMPANY,, 613 So. 2d 517 (Fla. Dist. Ct. App. 1993)

. . . The very basis of 672.403(2) is. to place on the owner the burden of losing his property if he knowingly . . .

GREEN TREE ACCEPTANCE, INC. v. D. ZIMERMAN D., 611 So. 2d 608 (Fla. Dist. Ct. App. 1993)

. . . . § 672.403(1), Fla.Stat. (1989). . . . Credit Corp., 377 So.2d 725 (Fla. 3d DCA1979); § 672.403(2), Fla.Stat. (1989) . . . . Further, section 672.403(2) may have a limited application with respect to motor vehicles. 45 Fla.Jur . . . to inquire as to the condition of title and are not otherwise entitled to the protections of section 672.403 . . . Section 672.403(2): "Any entrusting of possession of goods to a merchant who deals in goods of that kind . . .

FLORIDA EAST COAST PROPERTIES, INC. v. BEST CONTRACT FURNISHINGS, INC. s, 593 So. 2d 560 (Fla. Dist. Ct. App. 1992)

. . . Section 672.403 provides, in pertinent part: (1) A purchaser of goods acquires all title which his transferor . . . Section 672.403, Fla.Stat. (1989) (emphasis added). . . . In the present case the landlord is a third party who is entitled to rely on section 672.403. . . . Thus, the landlord is a third party who is entitled to rely on section 672.403. . . .

BILL WALLACE FORD, INC. v. LAMOUREAUX, 33 Fla. Supp. 2d 47 (Fla. Cty. Ct. 1988)

. . . .” § 672.403(l)(d), Fla. Stat. (1987). . . .

BROWN ROOT, INC. a v. RING POWER CORPORATION, a, 450 So. 2d 1245 (Fla. Dist. Ct. App. 1984)

. . . Rivera, 382 So.2d 825 (Fla. 4th DCA 1980); see § 672.403, Fla.Stat. (1981). . . . The appellant contends Louisiana law in this regard is contrary to section 672.403, Florida Statutes . . .

GEORGIA- PACIFIC CORPORATION, a v. WALTER E. HELLER COMPANY SOUTHEAST, INC. a, 440 So. 2d 666 (Fla. Dist. Ct. App. 1983)

. . . existence of an undisclosed interest in goods does not prevent passage of title pursuant to Section 672.403 . . . involved Bill Amos could have passed good title to the goods pursuant to the provisions of Section 672.403 . . .

CAR EXCHANGE, INC. v. ALLSTATE INSURANCE COMPANY,, 435 So. 2d 911 (Fla. Dist. Ct. App. 1983)

. . . We reverse upon authority of Section 672.403 (1977) and Carlsen v. . . .

FLORIDA DEPARTMENT OF CORRECTIONS, v. BLOUNT PONTIAC- GMC, INC., 411 So. 2d 930 (Fla. Dist. Ct. App. 1982)

. . . valid title to the fire truck as a good faith purchaser for value under the Uniform Commercial Code (§ 672.403 . . . However, it has been consistently held that Section 672.403 is not in direct conflict with the provisions . . . Grafting such an interpretation upon Section 679.109(4) would gut the purpose of Section 672.403, which . . . purpose is to protect buyers in due course: In Section 2-403 of the Code [§ 672.403, Fla.Stat.], the . . .

CARLSEN v. RIVERA, d b a d., 382 So. 2d 825 (Fla. Dist. Ct. App. 1980)

. . . Section 672.403, Florida Statutes (1977); Avis Rent-A-Car, Inc. v. . . . The buyer in the ordinary course of business obtains good title by virtue of Subsection 2 of Section 672.403 . . .

EVERGLADES MARINA, INC. a v. AMERICAN EASTERN DEVELOPMENT CORPORATION, a E. O, 374 So. 2d 517 (Fla. 1979)

. . . See section 672.403(1), Florida Statutes (1977). . . .

O NEILL, v. BARNETT BANK OF JACKSONVILLE, N. A. a, 360 So. 2d 150 (Fla. Dist. Ct. App. 1978)

. . . O’Neill’s estoppel argument is without merit because Section 672.403, Florida Statutes (1975), applies . . .

TRADER v. BEENE,, 46 Fla. Supp. 133 (Broward Cty. Ct. 1977)

. . . The pivotal section of the Uniform Commercial Code involved in the case at bar is Florida Statute 672.403 . . . F.S. 672.403 (1) (emphasis added) Any entrusting of possession of goods to a merchant who deals in goods . . . F.S. 672.403 (2) (emphasis added) Entrusting includes any delivery and any acquiescence in retention . . . F.S. 672.403 (3). . . . the property of the plaintiff, the result of which tortious conduct negated the provisions of F.S. 672.403 . . .

B. GRIMM, v. PRUDENCE MUTUAL CASUALTY COMPANY, a, 243 So. 2d 140 (Fla. 1971)

. . . . § 672.403 (1969) states that a purchaser of goods acquires all title which his transferor had or had . . .