Title 15 — Commerce and TradeRelease 119-73

§714p Release of innocent purchasers of converted goods

Title 15 › Chapter CHAPTER 15— - ECONOMIC RECOVERY › Subchapter SUBCHAPTER II— - COMMODITY CREDIT CORPORATION › § 714p

Last updated Apr 6, 2026|Official source

Summary

Buyers who buy interchangeable goods in the normal course of business from a warehouse or dealer who regularly trades those goods keep the goods free of any Commodity Credit Corporation claim that the seller lacked authority, as long as the buyer paid value in good faith and did not know or have reason to suspect the seller couldn't sell them. To get this protection the buyer must raise it as a defense in court and show it is more likely than not that the facts giving them the defense are true.

Full Legal Text

Title 15, §714p

Commerce and Trade — Source: USLM XML via OLRC

A buyer in the ordinary course of business of fungible goods sold and physically delivered by a warehouseman or other dealer who was regularly engaged in the business of buying and selling such goods shall take or be deemed to have taken such goods free of any claim, existing or hereafter arising, by Commodity Credit Corporation, based on the want of authority in the seller to sell such goods, provided the buyer purchased such goods for value in good faith and did not know or have reason to know of any defect in the seller’s authority to sell such goods. To be entitled to relief under this section a buyer must assert as an affirmative defense and establish by a preponderance of the evidence the facts necessary to entitle him to such relief.

Reference

Citations & Metadata

Citation

15 U.S.C. § 714p

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73