Selling Your Used Gear To Music Shops - A Big No-No?

guitars4you

goldtop said:

darthed1981 said:

guitarfishbay said:

Didn't someone on here lose an expensive guitar in this way when ToneWorld closed

That sort of thing really shouldn't happen, unless under these commission arrangements title of the goods transfers to the retailer.  If this is the case it is a massive risk.

This is basically a kind of bailment until the goods are sold surely?  In which case the guitar should just be returned to whoever owns it, it isn't a resource belonging to the shop.

In the case I recall, the poor owner had taken the amp into the guitar dealer (let's call it "Fred's Guitars"), and signed paperwork for the commission sale. The paperwork was in the name "Fred's Percussion World Ltd" and the amp owner didn't notice. Then the amp is sold, and the money is in Fred's Percussion World's account, for a while just before FPW Ltd goes bust, and the amp's owner has no claim against Fred's Guitars. I don't remember more than that.

It's not just the Harrisons who give the music industry a bad rep. I suspect that many of these old timers are very astute at moving the funds, assets and obligations of the various businesses around (rent, licencing, staff cost allocation, etc) so that with a bit of careful planning, there's nothing left in the sacrificial company when it goes under.

it is a very valid point regarding commission sales with dealers and the rights to remain with the customer/owner as the dealer is only an agent - A local jeweler in my town died a few years ago - Effectively a small one man business based on trust and little paperwork issued - The shop remained shut for over 4 years and unless you had a receipt, which he never issued, the agents for the estate would not hand back any repairs or goods left on commission without the required proof of ownership

I issue paperwork for such a transaction and have to admit the legal side of it is simple at best - It is not a 2 page contract loaded with terms/conditions and small print - But it is legal nevertheless - Goods are fully insured whilst in the shop - But I do appreciate there is an element of truss involved and I can see what you are referring to above when the goods are sold and such funds now sit in the bank account of the agent - And yes if that dealer closed down, then it will be a case of the seller becoming just another part of the equation as to what funds are still available within the business to pay of all appropriate debts - If the goods had not sold then it would (or should) be far easier, with a receipt, to reclaim your goods from the receiver - I dare such instances are minimal compared to the amount of goods sold on such a commission basis  - I pay all my customers within 5 days after the goods have sold

You would hope that any dealer knowing that liquidation is only a few days away would contact customers who have left their goods on the premises and advise them to collect asap