WHAT IF THE FACTS WERE DIFFERENT? Suppose that the goods on consignment were not consumer goods but goods owned by a business enterprise. How would that change in the facts affect the court’s decision?

THE ECONOMIC DIMENSION How does the answer to the question before the court affect the consignors?

Dudley King and eight other unrelated individuals consigned their recreational vehicles (RVs) for sale on the lot of Music City RV, LLC (MCRV). Subsequently, an involuntary Chapter 7 bankruptcy petition was filed against MCRV by some of its creditors (this type of bankruptcy proceeding will be discussed in Chapter 30). At the time of the bankruptcy, all of the consigned RVs were still on MCRV’s premises. Given that Article 9 of the UCC does not cover consignments that consist of consumer goods, the question before the bankruptcy court was whether the transaction was covered by Article 2 of the UCC. Because there were no precedents to guide the bankruptcy court on this issue, the court submitted the question to the Supreme Court of Tennessee for its decision.