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

buyback

buyer in ordinary course of business

buyout

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Cite this Entry

“Buyer in ordinary course of business.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/buyer%20in%20ordinary%20course%20of%20business. Accessed 19 Jan. 2022.

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