buyer in ordinary course of business

buy·​er 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.

Dictionary Entries Near buyer in ordinary course of business

buyback

buyer in ordinary course of business

buyout

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 13 Oct. 2024.

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