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A mercantile agent in possession of goods with the owner's consent sells them in the ordinary course of business to a good-faith buyer. The buyer:
AGets no title
BGets title only with the owner's later consent
CMust return the goods
DGets a good title, even though the agent lacked authority to sell
Answer & Solution
Correct answer: D. Gets a good title, even though the agent lacked authority to sell
Under the proviso to Section 27, a sale by a mercantile agent in possession with consent, acting in the ordinary course of business, to a good-faith buyer without notice, passes a good title.
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