Title 15 — Commerce and TradeRelease 119-73not60

§714p Release of Innocent Purchasers of Converted Goods

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

Last updated Apr 3, 2026|Official source

Summary

A buyer who, in the normal course of business, buys interchangeable goods sold and delivered by a warehouse or regular dealer gets those goods free of any claim now or later by the Commodity Credit Corporation that the seller lacked authority to sell them. This only applies if the buyer paid for the goods, acted in good faith, and did not know or have reason to know the seller lacked authority. To use this protection, the buyer must raise it in court and show the required facts are more likely true 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

Apr 3, 2026

Release point: 119-73not60