New Jersey § 12A:2-402 Rights of seller's creditors against sold goods

New Jersey Statutes

§ 12A:2-402 — Rights of seller's creditors against sold goods

New Jersey § 12A:2-402

Title 12ACOMMERCIAL TRANSACTIONS

This text of New Jersey § 12A:2-402 (Rights of seller's creditors against sold goods) is published on Counsel Stack Legal Research, covering New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.J. Stat. Ann. § 12A:2-402 (2026).

Text

(1)Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Chapter (12A:2-502 and 2-716).

(2)A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent.

(3)Nothing in this Chapter shall be deemed to impair the rights of creditors of the seller (a) under the pr

Free access — add to your briefcase to read the full text and ask questions with AI

(1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Chapter (12A:2-502 and 2-716). (2) A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent. (3) Nothing in this Chapter shall be deemed to impair the rights of creditors of the seller (a) under the provisions of the Chapter on Secured Transactions (Chapter 9); or (b) where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this Chapter constitute the transaction a fraudulent transfer or voidable preference. L.1961, c. 120, s. 2-402.