Ordinary course of business

Ordinary course of business

In law, the ordinary course of business covers the usual transactions, customs and practices of a certain business and of a certain firm. This term is used particularly to judge the validity of certain transactions. It is used in several different sections of the Uniform Commercial Code.

Section 1-201 of the Uniform Commercial Code defines a "Buyer in the ordinary course of business" by a four part test:

  1. a person that buys goods in good faith,
  2. without knowledge that the sale violates the rights of another person in the goods [e.g. a security interest],
  3. and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind.
  4. A person buys goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of business in which the seller is engaged or with the seller's own usual or customary practices.
[emphasis added]



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  • ordinary course of business — ordinary course of business: the usual manner and range of a business esp. considered in relation to the amount, circumstances, and validity of a particular transfer the bankruptcy trustee voided a transfer that was not in the ordinary course of… …   Law dictionary

  • ordinary course of business — See in the ordinary course of business …   Ballentine's law dictionary

  • ordinary course of business — during regular business operations …   English contemporary dictionary

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  • sale in ordinary course of business — See in the ordinary course of business …   Ballentine's law dictionary

  • in the ordinary course of business — In the course of business of mercantile men generally, not those engaged in a particular trade. Romeo v Martucci 72 Conn 504, 45 A 1. A sale such as made in the regular course of business, not one such as will be made only a few times in the life …   Ballentine's law dictionary

  • course of business — index custom Burton s Legal Thesaurus. William C. Burton. 2006 course of business n. Normal …   Law dictionary

  • course of business — What is usually and normally done in the management of trade or business. See also course of dealing regular course of business. In worker s compensation acts, the usual course of business of the employer covers the normal operations which form… …   Black's law dictionary

  • course of business — What is usually and normally done in the management of trade or business. See also course of dealing regular course of business. In worker s compensation acts, the usual course of business of the employer covers the normal operations which form… …   Black's law dictionary

  • ordinary course of trade — See in the ordinary course of business …   Ballentine's law dictionary

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