New v. Used Goods

Bill White

Well-known member
Messages
204
Reaction score
0
Location
Marietta, GA, US
One issue that many posters have speculated about is when goods should be considered "used." I do not know what New York law provides. Unless there is a special section relating to consumer goods, it could be covered by the Uniform Commercial Code (which is a misnomer as it is not totally uniform from state to state). Is there a New York lawyer in the house? :)

This is my take on the issue and should not be considered a legal opinion as I cannot offer an opinion on New York law. (only a lawyer licensed to practice in New York can do that) Nevertheless, this may provide some help to those who have asked. (or perhaps not :))

Everyone would probably agree that once title passes, goods should not be considered new. If I own it, the store does not and the goods are now used goods. Therein lies the problem. Some have suggested that title should pass when you walk out the door but that is not the case in Georgia. The issue of title passing is not as simple as it may seem.

Under the UCC in Georgia, (and it could be different in NY but apparently not) a sale is not complete and title does not pass until the buyer accepts the goods. If the seller gives the buyer a certain period of time to reject the goods and the buyer does so, the UCC provides that title has not passed and the sale is a nullity unless the buyer takes some action to evidence an acceptance of the goods inconsistent with the right of exchange. Thus the goods have not been sold and would still be new. So a store is not selling used goods if they resale returned merchandise under the UCC in Georgia.

The seller and buyer have the right to set their own terms under the UCC. In the case of a photo store, the seller advertises its terms and you accept those terms when you buy from them. Unfortunately for us as buyers, we do not have leverage to change the terms. So if the store policy is to allow you to return the goods for a specific period of time, no sale occurs until that time period expires under the UCC in Georgia unless you take some action to accept the goods (such as sending in the warranty card).

I think Mr. Posner alluded to this when he said someone had returned a product with the UPC removed for a rebate and B&H refused to accept the return. This policy is consistent with the concept of an acceptance by the buyer thereby passing title.

So as a buyer, you have to decide what you want and you must read the store policy very carefully. Factory fresh merchandise may only be available at a store with a policy of "All sales final unless defective." Otherwise you may be buying a new product that has been exchanged and reinspected. Of course, you then have a right to return that merchandise. In the final analysis, that may be the best option.

Personally, I prefer the right to exchange as defective is another term without a precise definition. :)
--Bill
 
Well, you did just offer an opinion. ;)

Shall I report you to the Georgia State Bar? LOL.

Thanks -- I suspect that the law in many states are similar to what you have there in Georgia. If this weren't the case, I suspect B&H would've had a few lawsuits by now.
This is my take on the issue and should not be considered a legal
opinion as I cannot offer an opinion on New York law. (only a
lawyer licensed to practice in New York can do that) Nevertheless,
this may provide some help to those who have asked. (or perhaps not
:))
--The Unofficial Photographer of The Wilkinsons http://thewilkinsons.crosswinds.net
 
Shall I report you to the Georgia State Bar? LOL.

Thanks -- I suspect that the law in many states are similar to what
you have there in Georgia. If this weren't the case, I suspect B&H
would've had a few lawsuits by now.
This is my take on the issue and should not be considered a legal
opinion as I cannot offer an opinion on New York law. (only a
lawyer licensed to practice in New York can do that) Nevertheless,
this may provide some help to those who have asked. (or perhaps not
:))
--
The Unofficial Photographer of The Wilkinsons
http://thewilkinsons.crosswinds.net
--Jeff MorrisAdams, Gutmann, Steichen, Stigletz, Weston. they lead by example.
 
Thank You for that explaination. It might be better if stores offered two policies.

1.) Exchange for defective unit only. If returned to the store and found defective, then the store would issue a refund or replace the item with a new unopened model. The store would only ship new gear period! Unless the customer received a demo discount.

Or:

2.) Company has a return policy such as B&H's. Customer may return product for refund or exchange up to so many days. It is understood the the majority of items sold will be new in box. However the dealer reserves the right to sell new in box merchandise that may have been opened or handled by the store or customers. That merchandise should be packed and apear as new! --Jeff MorrisAdams, Gutmann, Steichen, Stigletz, Weston. they lead by example.
 
Hopefully it's helpful then. :)
Well, you did just offer an opinion. ;)

Shall I report you to the Georgia State Bar? LOL.

Thanks -- I suspect that the law in many states are similar to what
you have there in Georgia. If this weren't the case, I suspect B&H
would've had a few lawsuits by now.

--Bill
 
I suspect a store like #1 wouldn't get as much business -- because either it's prices would be higher, or they'd charge a re-stocking fee on non-defective returns.

Walk-in customers have an advantage, in that they can see the merchandise and decide if they want to buy it. For us mail-order folks, the only way we get that kind of service is by having a return policy (7 - 14 days is typical) where we can try the item to see if we like it.

We shouldn't abuse it, though. I'd feel very guilty if I got a lens, took it on a week-long trip, then returned it as non-defective. That's what rentals are for.
Thank You for that explaination. It might be better if stores
offered two policies.

1.) Exchange for defective unit only. If returned to the store
and found defective, then the store would issue a refund or replace
the item with a new unopened model. The store would only ship new
gear period! Unless the customer received a demo discount.

Or:

2.) Company has a return policy such as B&H's. Customer may
return product for refund or exchange up to so many days. It is
understood the the majority of items sold will be new in box.
However the dealer reserves the right to sell new in box
merchandise that may have been opened or handled by the store or
customers. That merchandise should be packed and apear as new!
--
--The Unofficial Photographer of The Wilkinsons http://thewilkinsons.crosswinds.net
 
Thanks Bill. Even the Georgia law gets us a lot further toward understanding this issue.

Now if the other camera stores would post their policies here like B&H did, we would have some facts to work with and a rational basis for comparison.
One issue that many posters have speculated about is when goods
should be considered "used." I do not know what New York law
provides. Unless there is a special section relating to consumer
goods, it could be covered by the Uniform Commercial Code (which
is a misnomer as it is not totally uniform from state to state). Is
there a New York lawyer in the house? :)

This is my take on the issue and should not be considered a legal
opinion as I cannot offer an opinion on New York law. (only a
lawyer licensed to practice in New York can do that) Nevertheless,
this may provide some help to those who have asked. (or perhaps not
:))

Everyone would probably agree that once title passes, goods should
not be considered new. If I own it, the store does not and the
goods are now used goods. Therein lies the problem. Some have
suggested that title should pass when you walk out the door but
that is not the case in Georgia. The issue of title passing is not
as simple as it may seem.

Under the UCC in Georgia, (and it could be different in NY but
apparently not) a sale is not complete and title does not pass
until the buyer accepts the goods. If the seller gives the buyer a
certain period of time to reject the goods and the buyer does so,
the UCC provides that title has not passed and the sale is a
nullity unless the buyer takes some action to evidence an
acceptance of the goods inconsistent with the right of exchange.
Thus the goods have not been sold and would still be new. So a
store is not selling used goods if they resale returned merchandise
under the UCC in Georgia.

The seller and buyer have the right to set their own terms under
the UCC. In the case of a photo store, the seller advertises its
terms and you accept those terms when you buy from them.
Unfortunately for us as buyers, we do not have leverage to change
the terms. So if the store policy is to allow you to return the
goods for a specific period of time, no sale occurs until that time
period expires under the UCC in Georgia unless you take some action
to accept the goods (such as sending in the warranty card).

I think Mr. Posner alluded to this when he said someone had
returned a product with the UPC removed for a rebate and B&H
refused to accept the return. This policy is consistent with the
concept of an acceptance by the buyer thereby passing title.

So as a buyer, you have to decide what you want and you must read
the store policy very carefully. Factory fresh merchandise may only
be available at a store with a policy of "All sales final unless
defective." Otherwise you may be buying a new product that has been
exchanged and reinspected. Of course, you then have a right to
return that merchandise. In the final analysis, that may be the
best option.

Personally, I prefer the right to exchange as defective is another
term without a precise definition. :)

--
Bill
 

Keyboard shortcuts

Back
Top