[IvySpice]

Under the uniform Commercial Code, which is the law in every state, there are more protections for consumers than for dealers/commercial entities, and more protections for innocent holders of goods than those who take possession knowing the goods are stolen.

Here are two hypos to illustrate:

A owns a badge. B steals the badge and sells it to C, an antique dealer, who knows that it was stolen from A. In a suit between A and C, A would win because C took possession of the pin in bad faith, knowing B did not have title.

But if C has, in the meantime, sold the badge to D, a consumer, who had no idea where C got it, D becomes the legal owner and A cannot get it back from D. A consumer who, without notice of a superior claim to title, buys an article from a dealer who regularly sells that kind of article takes good title as against the whole world.

So unless the pin is listed as "stolen fraternity pin," anybody who buys a pin from a regular eBay dealer is the owner of the pin, free and clear.

Ivy (***** Law School '02)