The respondent consigned a boat to a marine dealership, which sold it to the appellant for $46,000 without the respondent's authorization.
The dealership went bankrupt without remitting the proceeds.
The respondent sued the appellant for the return of the boat or its value, and was granted summary judgment.
On appeal, the Court of Appeal reversed the decision, finding that the appellant was a good faith purchaser without notice of the dealership's lack of authority.
The court held that section 2(1) of the Factors Act protected the appellant, as it does not impose a due diligence requirement on purchasers to inquire into a mercantile agent's authority.