12A:2-332 - Protection of consignor from creditors of consignee - New Jersey Statutes

12A:2-332.   Protection of consignor from creditors of consignee
    (1)  Notwithstanding the provision of N.J.S. 12A:2-326, the consignor may be protected against the creditors of the consignee where:

   (a)  the consignee or consignor places a sign on the craft or work of fine art which states that the item is on consignment; or

   (b)  the consignor establishes that the consignee is generally known by his creditors to be substantially engaged in selling the goods of others; or

   (c)  the consignor complies with the filing provisions of chapter 9 of this title (Uniform Commercial Code-Secured Transactions), thereby perfecting a security interest in the craft or work of fine art.

   (2)  At the time the craft or work of fine art is placed on consignment, the consignee shall provide the consignor with a written tatement of consignor's rights as set forth in subsection (1) of this section.  A consignee who fails to give such notice shall be a petty disorderly person and shall be subject, upon conviction, to the penalties set forth in N.J.S. 2C:43-3.

   (3)  A craft or work of fine art initially received on consignment shall remain the property of the consignor upon compliance with the provisions of subsection (1) of this section, notwithstanding the subsequent purchase of the craft or work of fine art by the consignee, directly or indirectly, for the consignee's own account, until the terms of the purchase are completed.

   L. 1987, c. 132, s. 4.