Mastro consignors not paid yet?

[Exhibitman]

I had one of these cases several years ago. Because the consignor parted with the card knowingly at the outset but the auctioneer embezzled the proceeds, title may transfer. It depends on two factors: (1) which state law is applicable to the transaction and (2) which version of the Uniform Commercial Code was enacted by that state. Some states allow an item obtained under false pretenses to be sold to a bona fide (unwitting) purchaser; some do not. Assuming that the initial transaction could be deemed a transaction under false pretenses--which it may well be since Mastro plainly was in deep doo-doo at the time of the February auction since it ceased ops in early March--whether title transfers has to be analyzed as above.