Quote:
Originally Posted by Peter_Spaeth
Why is simply shipping your cards to the vault a consignment that implicates UCC filing requirements? At least if you haven't instructed Goldin to sell them? And even if Goldin was so instructed, the UCC says it still isn't a consignment because Goldin is an auctioneer and is known to be selling the goods of others.
"UCC Section 9-
102(a)(20) defines a consignment as a
transaction in which a person delivers
goods to a merchant for purposes of sale,
and (a) the merchant deals in goods of that
kind under a name other than the name of
the person making delivery, is not an auctioneer
and is not generally known by its
creditors to be substantially engaged in
selling the goods of others"
In any case, while it is not my area, it seems to me at least some transactions in which the cards are shipped to Goldin would be more like a bailment in which there is no need to file a UCC-1.
"A bailment is a delivery of goods by the
owner, the bailor, to another party, the
bailee, for some express purpose. After fulfilling
this purpose, the bailee is obligated
to return the goods to the bailor or dispose
of the goods according to the bailor’s
instructions. As such, a bailment is an
entrustment under UCC Article 2-403(3).
The bailor has a right to the goods with
priority over the bailee in possession of the
goods and creditors of the bailee with a
security interest or lien in such goods. A
bailment is not a sale or consignment, and
is therefore not subject to the Article 9
UCC filling requirements and other rules."
I could be completely wrong but I'm not seeing the need to file a UCC-1 to keep those cards from Goldin's creditors?
|
Hey Peter,
Was basically asking Adam the same thing in Post #36, without your excellent, specific references. I went a little further to also get his thinking on what happens when someone then does ask for something to be taken from the "vault" and put up for consignment. I think you'd want the people running the "vaults" to have their paperwork and records in order, including physically separating what is in the "vault" from what is consigned, and documenting the hell out of it so there is no question as to the status of anything these "vault" operators hold. What do you think?