Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.1 6/24/83; site rabbit.UUCP
Path: utzoo!linus!philabs!seismo!harpo!eagle!allegra!alice!rabbit!ark
From: ark@rabbit.UUCP
Newsgroups: net.legal
Subject: Re: Unintentional creditors in business bankrupcies
Message-ID: <2297@rabbit.UUCP>
Date: Fri, 16-Dec-83 16:28:21 EST
Article-I.D.: rabbit.2297
Posted: Fri Dec 16 16:28:21 1983
Date-Received: Sat, 17-Dec-83 08:18:12 EST
References: <19044@wivax.UUCP>
Organization: AT&T Bell Laboratories, Murray Hill
Lines: 17

You aren't immune even if you take delivery on the merchandise!

I heard a story recently about someone who bought a new airplane
from a dealer, paying cash for it.  After he took delivery, the
dealer went bankrupt.  The dealer's bank came by and repossessed
the airplane!

Apparently, the dealer had financed his inventory by using it
as collateral.  He did not have enough money, for whatever reason,
to pay off the loan that was collateralized by that particular
airplane.  The customer never dreamed that he was not getting
clear title to the airplane.

For this reason, many people who buy airplanes have title searches
done (after all, they cost as much as houses...)  I don't see,
though, why this anecdote would be any different if "airplane" were
replaced by "television set" in the story.