California · Commercial Code

COM §7205: 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 wareh

What this law says, in plain English

A buyer in ordinary course of business takes fungible goods free from warehouse claims when purchased from a warehouse that also buys and sells such goods.

Read the full statutory text

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.

Verify at the official source: California legislative text

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