Title 15, Commerce and TradeRelease 119-102
§714p Release of Innocent Purchasers of Converted Goods
Title 15 › CHAPTER 15 — ECONOMIC RECOVERY › SUBCHAPTER II — COMMODITY CREDIT CORPORATION › § 714p
Summary
Buyers who buy interchangeable goods in business from a warehouseman or dealer who regularly sells them get those goods free of any Commodity Credit Corporation claim if they paid in good faith and had no reason to know the seller lacked authority. The buyer must claim this as a defense and prove the facts by more likely than not.
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
Aug 21, 2026
Release point: 119-102