Legal Question in Business Law in California

Buying Used Machinery w/out Viewing It

We have a manufacturing business in CA. We heard of a used machine for sale in SC and are interested in it. We are thinking of having a service representative from the local machinery dealer inspect it for us. How could we protect ourselves if we try to buy a machine this way? Escrow account? We have done business with the sales person before but have always been able to personally inspect the used machines we've purchased.

Thank you.


Asked on 1/28/02, 3:47 pm

3 Answers from Attorneys

Francis Doherty Doherty Georgeson & Kerley LLP

Re: Buying Used Machinery w/out Viewing It

I know a reputable outfit that will inspect you machine. Escrow is also fine.

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Answered on 1/28/02, 4:05 pm
Wayne Smith Wayne V. R. Smith

Re: Buying Used Machinery w/out Viewing It

A commercial contract is whatever the parties agree to do. If the seller agrees to hold the funds in escrow while you try out the machine on a trial basis, then you could get your money back if it does not work, or meet specifications, or whatever condition. Very careful drafting is required here. It would be best if you just went and inspected the machine yourself, unless the local person is someone you can trust as to his opinion. or perhaps you pay the freight, get it out here, put up an irrevocable letter of credit that seller can access if you do not cancel within so many days. In the negotiation stage, you can get creative.

NOTE: Please understand that the information provided in this reply is for informational purposes only and does not create an attorney-client relationship. It also may not be complete, and is designed for general information to parties under California law. Before you make any decision that might possibly have legal implications, you should consult with our office, or another qualified professional, so that thorough legal advice can be provided in a manner that relates to your specific circumstances. Thank you.

Reply Posted By:

Wayne V.R. Smith

Attorney at Law

P.O. Box 3219

Martinez CA 94553

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Answered on 1/28/02, 5:11 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Buying Used Machinery w/out Viewing It

Unless you bargain for some sort of guarantee or warrantee the machine will come �as is�. Just make sure the person who inspects it knows what they are doing.

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Answered on 1/28/02, 6:30 pm


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