senate Bill S963

2011-2012 Legislative Session

Deems goods to be on sale or return as to creditor claims when goods delivered to person dealing in goods of the kind involved

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to judiciary
Jan 05, 2011 referred to judiciary

S963 - Bill Details

See Assembly Version of this Bill:
A690
Current Committee:
Law Section:
Uniform Commercial Code
Laws Affected:
Amd ยง2-326, UCC
Versions Introduced in 2009-2010 Legislative Session:
S636, A1755

S963 - Bill Texts

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Deems goods to be on sale or return as to creditor claims when goods delivered to person dealing in goods of the kind involved.

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BILL NUMBER: S963

TITLE OF BILL :
An act to amend the uniform commercial code, in relation to deeming
goods to be on sale or return as to creditor claims when goods
delivered to person dealing in goods of the kind involved


PURPOSE :
This bill deems goods to be on sale or return as to creditor claims
when goods delivered to person dealing in goods of the kind involved.

SUMMARY OF PROVISIONS :
The section heading and subsection 2 of section 2-236 of the uniform
commercial code, as amended by chapter 84 of the laws of 2001, are
amended and new subsection 4 is added.

JUSTIFICATION :
In 2001, the New York State Legislature enacted laws changing the
uniform commercial code (UCC) that were pursuant to federal
recommendations. However, there have been adverse and unintentional
effects on individuals throughout the state. Persons who have brought
items to auctioneers or consignment shops have had their belongings
sold at auction to payoff debt incurred by the auction/consignment
company. The individual never receives any money from the items they
brought to the shop. The money made from the resulting auction has
been used to pay off the remaining debt of the auction/consignment
shop.

This practice is horrendously unfair and penalizes the individual for
financial missteps made by the shop owner. It is the goal of this
legislation to put an end to this practice in New York State.

LEGISLATIVE HISTORY :
2009-10 S.636; S.864, 2007-08; S.1368, 2005-06; S.6875, 2004.

FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
This act shall take effect immediately.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 963                                                    A. 690

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Judiciary

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Consumer Affairs and Protection

AN ACT to amend the uniform commercial  code,  in  relation  to  deeming
  goods  to be on sale or return as to creditor claims when goods deliv-
  ered to person dealing in goods of the kind involved

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  section heading and subsection 2 of section 2-326 of
the uniform commercial code, as amended by chapter 84  of  the  laws  of
2001, are amended and a new subsection 4 is added to read as follows:
  Sale  on  Approval and Sale or Return; CONSIGNMENT SALES AND Rights of
Creditors.
  (2) [Goods] EXCEPT AS  PROVIDED  IN  SUBSECTION  (4),  GOODS  held  on
approval  are  not  subject to the claims of the buyer's creditors until
acceptance; goods held on sale or return  are  subject  to  such  claims
while in the buyer's possession.
  (4)  WHERE  GOODS  ARE  DELIVERED TO A PERSON FOR SALE AND SUCH PERSON
MAINTAINS A PLACE OF BUSINESS AT WHICH HE DEALS IN  GOODS  OF  THE  KIND
INVOLVED,  UNDER  A NAME OTHER THAN THE NAME OF THE PERSON MAKING DELIV-
ERY, THEN WITH RESPECT TO CLAIMS OF CREDITORS OF THE  PERSON  CONDUCTING
THE  BUSINESS  THE  GOODS  ARE  DEEMED  TO  BE  ON SALE OR RETURN.   THE
PROVISIONS OF THIS SUBSECTION ARE APPLICABLE EVEN  THOUGH  AN  AGREEMENT
PURPORTS TO RESERVE TITLE TO THE PERSON MAKING DELIVERY UNTIL PAYMENT OR
RESALE OR USES SUCH WORDS AS "ON CONSIGNMENT" OR "ON MEMORANDUM". HOWEV-
ER, THIS SUBSECTION IS NOT APPLICABLE IF THE PERSON MAKING DELIVERY
  (A) COMPLIES WITH AN APPLICABLE LAW PROVIDING FOR A CONSIGNOR'S INTER-
EST OR THE LIKE TO BE EVIDENCED BY A SIGN, OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03746-01-1

S. 963                              2                             A. 690

  (B)  ESTABLISHES  THAT THE PERSON CONDUCTING THE BUSINESS IS GENERALLY
KNOWN BY HIS CREDITORS TO BE SUBSTANTIALLY ENGAGED IN SELLING THE  GOODS
OF OTHERS, OR
  (C)  COMPLIES  WITH  THE  FILING  PROVISIONS OF THE ARTICLE ON SECURED
TRANSACTIONS (ARTICLE 9).
  S 2. This act shall take effect immediately.

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