§ 7205 Buyer Rights Fungible Goods

• •A buyer who purchases goods normally gets full ownership of those goods.
• •Even if a warehouse receipt is negotiable, the buyer is still protected.
• •This only applies to goods that can be easily replaced, like food or other similar items.

A grocery store buys a truckload of oranges from a warehouse that also sells oranges. Later, another company says they have a right to those oranges because of a warehouse receipt. The store can still keep the oranges because of this law.

The store bought the oranges in the normal way, so the law protects them and they don't have to give the oranges to the other company just because of the receipt.