31(1)In this section, “mercantile agent” has the same meaning as in the Factors and Agents Act.

31(2)When a person having sold goods continues or is in possession of the goods, or of the documents of title to the goods, the delivery or transfer by that person, or by a mercantile agent acting for that person, of the goods or documents of title under any sale, pledge, or other disposition of them to any person receiving them in good faith and without notice of the previous sale, has the same effect as if the person making the delivery or transfer were expressly authorized by the owner of the goods to make it.

31(3)When a person having bought or agreed to buy goods obtains, with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person, or by a mercantile agent acting for that person, of the goods or documents of title under any sale, pledge, or other disposition of them to any person receiving them in good faith and without notice of any lien or other right of the original seller in respect of the goods, has the same effect as if the person making the delivery or transfer were a mercantile agent in possession of the goods or documents of title with the consent of the owner.

31(4)Subsection (2) does not apply to a sale, pledge or other disposition of goods or documents of title to goods by a person who continues or is in possession of the goods under a sale of goods without a change of possession within the meaning of the Personal Property Security Act.

31(5)Subsection (3) does not apply to a sale, pledge or other disposition of goods or documents of title to goods by a person who obtains possession of the goods under a security agreement entered into with the seller under which the seller has a security interest in the goods within the meaning of the Personal Property Security Act.