(1)Where a mercantile agent is with the consent of an owner, in possession of goods or the documents of title to goods, any pledge made by the mercantile agent while acting in the ordinary course of business of a mercantile agent, shall be as valid as if the mercantile agent was expressly authorised by the owner of the goods to make the pledge.

(2)Where a pledge is made under subsection (1), a pledgee shall be taken to act in good faith and to have no notice at the time of the pledge, that the mercantile agent had no authority to pledge.

(3)Where a mercantile agent validly pledges the documents of title to goods, the pledge shall be deemed to be a pledge of the goods.

(4)Where a pledgor obtains possession of the other goods pledged by him or her under a contract which is voidable under section 15(1), but the contract is not rescinded at the time of the pledge, the pledgee acquires a good title to the goods, where the pledgee acts in good faith and without notice of the defect in the title of the pledgor.