Posted By:
PCConsignments are indeed very tricky. Which is why most commercial suppliers file UCC-1s to protect their interests as consignors.
A supplier of grain or metal, whose grain or metal is likely mixed in with the same material from other suppliers at a particular factory, is aware of the need for an appropriate consignment agreement and that a UCC-1 needs to be filed. That's prudent, and in the ordinary course of their business. Of course, that is very different from a collector seeking to consign an SGC graded T206 Cobb to an auction house. No consignor is likely to file a UCC-1 in that case, and it might not be necessary (as Adam has pointed out).
But bankruptcy trustees and secured creditors have gone after stranger assets, in more questionable circumstances. I'd be a little hesitant to consign if I thought an auctioneer was in financial trouble (and how would you find that out -- it's not like an auctioneer is going to respond to your inquiries about their secured debt).