Buyer In Ordinary Course Of Business
buyer in ordinary course of business: a bona fide purchaser who in a normal or regular business procedure buys goods from a seller in the business of selling goods of that kind NOTE: Under the Uniform Commercial Code a buyer in ordinary course of business takes the purchased goods free of the property interests of a third party. The consideration exchanged for the goods is restricted to cash, other property, or credit. The purchase also cannot be a transfer in bulk or serve as security for or satisfaction of a debt. Pawnbrokers are specifically excluded from qualifying as buyers in ordinary course of business.
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.