buyer in ordinary course of business

buy·er in ordinary course of business

Legal Definition of 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.

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Dictionary Entries near buyer in ordinary course of business

but-for

but-for cause

buyback

buyer in ordinary course of business

buy out

buyout

bylaw

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evasion of direct action or statement

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