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.
Cal. Com. Code § 7205
Warehouse Receipts: Special Provisions
Known as the Uniform Commercial Code
The act spans §§ 1101 to 12107 (623 sections).
Repealed and added by Stats. 2006, Ch. 254, Sec. 49
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.