entrustment under u.strongcstrong.strongcstrong. section 2-403 and its implications.pdf

Campbell Law R eview Volume 9 Article 5 Issue 2 Spr ing 1987 1987 Entrustment under U.C.C. Section 2-403 and Its Implications for Article 9 J ohn E. Cargill Follow this and additional works at : /clr Part of the Se ured Transactions Commons Re ommended Citation J ohn E. Cargill, Entrustment under U.C.C. Section 2-403 and Its Imp lications for Article 9, 9 Campbell L. Rev. 407 (1987). This Comment is brought to you for free and open a ess by Scholarly Repository @ Campbell University School of Law. It has been a epted for inclusion in Campbell Law R eview by an authorized administrator of Scholarly Repository @ Campbell University School of Law. Cargill: Entrustment under U.C.C. Section 2-403 and Its Implications for A ENTRUSTMENT UNDER U.C.C. SECTION 2-403 AND ITS IMPLICATIONS FOR ARTICLE 9 I. INTRODUCTION 407 II. ENTRUSTMENT UNDER SECTION 2-403 409 III. ARTICLE 9: THE SECURED PARTY'S RIGHTS UPON DISPOSITION OF COLLATERAL 412 IV. RECONCILING SECTION 2-403 WITH ARTICLE 9 414 A. The PrevailingArticle 9 Secured Creditor 414 B. The Prevailing Section 2-403 Buyer in the Ordinary Course of Business 427 C. The North Carolina View 432 V . C ONCLUSION 433 I. INTRODUCTION Under what circumstances does entrustment operate to sever a secured party's rights in collateral? Co