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Posted By: warshawlaw

Looks like there was a state law that covered the transaction...in Nebraska. What was not stated was what happened in the transaction itself: Was the deal made in person or through the mail? Was there a written agreement between the parties? Did the seller have proof of what he sold or did he simply admit that the card was the right one? Did the seller and buyer agree on a warranty? Does the law in question permit limits on warranties or as-is sales? If the deal was done in SF, why is the case in another state?

There are many ways to protect yourselves as dealers from this situation: (1) scan the fronts and backs of all significant cards so that they can be readily ID'd if a question arises later on; (2) use a written term sheet for all significant sales naming a state which has a law permitting waivers of warranties and listing an express warranty with limits or making the deal an as-is sale; (3) use a third party grader and indicate all sales of third party cards are without warranty; (4) use a written term sheet with choice of law and venue provisions to force a buyer to come to your home town to sue rather than hauling your butt across the country.