Commercial Law - U.C.C. - New Jersey Federal District Court Fails to Protect Seller's Right of Reclamation against Trustee in Bankruptcy Despite 1966 U.C.C. Amendment - In re Good Deal Supermarkets, Inc. 384 F. Supp. 887 (D.N.J. 1974)
Loading...
Authors
Anderson, Richard L.
Issue Date
1975
Volume
8
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
FIRST PARAGRAPH(S)|The situation arising in In re Good Deal Supermarkets, Inc. [Good Deal] is not atypical of bankruptcy cases. On June 13, 1973, Good Deal Supermarkets, Inc. received $3,100 worth of potatoes on credit from the petitioners. On June 14, 1973, Good deal filed a petition in bankruptcy under Chapter XI of the Bankruptcy Act. On June 19, 1973, within ten days of the receipt of the potatoes by Good Deal, the petitioner made demand for their return as provided under Section 12A: 2-702(2) of the New Jersey Statutes [Section 2-702]. The petitioner received neither the potatoes nor the purchase price in response to this demand. Upon hearing in bankruptcy court, the judge found that the right claimed under Section 2-702(2) was a state lien, as defined within the Bankruptcy Act, and, as provided therein, was invalid against the trustee in bankruptcy. The purpose of this note is to examine the Good Deal decision and the arguments which militate against it, in light of the bases of the reclamation right under both pre-Code law and the Uniform Commercial Code [U.C.C.]...
Description
Citation
8 Creighton L. Rev. 835 (1974-1975)
Publisher
Creighton University School of Law