Articles Posted in UCC

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Imagine . . .

You’ve just completed a purchase of a friendly competitor’s overstocked inventory from the current season.  She gave you a good price and will let you leave the goods at her warehouse for 30 days, just in time to pick them up for your end of season sale.  She’s a little hungry right now; this isn’t her first bad stocking decision, and you’ve heard rumors she’s been stretching out her vendors.

You’re not worried about your purchase, though.  You’re paying market for the inventory.  Her bank’s consented to the transfer and released its lien.  There aren’t any other liens.  You don’t need to worry about her other creditors, right? Continue reading