COURSE DESCRIPTION
Untitled Document
In a consignment, a client, the consignor, ships or transfers control of goods to a seller, the consignee, who agrees to market the property and pay over some portion of the sales proceeds to the consignor. The arrangement involves a network of complex rights and obligations among the parties. There are also substantial and often overlooked risks, including that the consignee’s creditors may seek to claim a security interest in the consigned property. If these risks are not properly understood and remedies not carefully considered, the consignor is at substantia risk of loss. This program will provide you to the law of consignments, the substantial UCC Article 9 issues and risks involved, and provide practical tips for drafting effective consignment agreements.
- Review of the law of consignments and relationship to secured finance
- Structure of common consignment transactions
- Parties, rights and obligations – consignor as creditor, consignee as debtor, creditors
- Risks of loss to consignor and how it can protect itself against consignee’s creditors
- Circumstances when UCC Article 9 does not apply to consignments
- Remedies for breach by consignee
Speaker:
Steven O. Weise is a partner in the Los Angeles office Proskauer Rose, LLP, where his practice encompasses all areas of commercial law. He has extensive experience in financings, particularly those secured by personal property. He also handles matters involving real property anti-deficiency laws, workouts, guarantees, sales of goods, letters of credit, commercial paper and checks, and investment securities. Mr. Weise formerly served as chair of the ABA Business Law Section. He has also served as a member of the Permanent Editorial Board of the UCC and as an Advisor to the UCC Code Article 9 Drafting Committee. Mr. Weise received his B.A. from Yale University and his J.D. from the University of California, Berkeley, Boalt Hall School of Law.